European stocks rebound on easing inflation data, U.S. debt deal optimism

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European stocks rose as investors received a positive euro zone inflation data along with reports of the US House of Representatives passing a bill to avoid a catastrophic debt default

towards an interest rate hike "skip" in June, prompting a quick reversal of market expectations for another hike as the U.S. central bank weighs the value of caution against still-strong inflation data.the bill to suspend the $31.4 trillion debt ceiling and avoid a catastrophic default, with majority support from both Democrats and Republicans, stoking optimism that it can move through the Senate before the weekend.

"There's optimism that the deal could pass without much hindrance through the Senate as long as time doesn't run out," Coghlan added, "But focus will quickly switch once we get that debt ceiling deal done onto the path of U.S. rates and whether the Fed's gonna pause in June and how they're going to respond to the tight labour market."climbed 2.0% after J.P.

Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Sherry Jacob-Phillips and Eileen Soreng; Editing by Ros Russell

 

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