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European stock markets opened higher on Friday, continuing their positive momentum of the previous day. The threat of default by the United States was averted by an overnight vote in Congress.
Global stock markets maintained their positive trend on Friday. This followed the averting of the threat of US default, thanks to the overnight Congressional vote, and ahead of the release of a key US employment indicator.
In Europe, Paris rose by 1.22%, London by 0.91%, Frankfurt by 0.97% and Milan by 0.63% at around 11:30 a.m.
Asian markets performed very well, particularly Hong Kong, which closed up over 4%, boosted by technology stocks. Tokyo also ended sharply up by 1.21%, while Shanghai closed +0.79%.
Suspension of US debt
European indices opened “higher this morning after the (unsurprising) passage of a bill by the Senate to suspend the US debt ceiling”, “putting an end to a typically American psychodrama” that had kept investors in suspense, according to Mirabaud investment expert John Plassard.
After lengthy negotiations, the US Congress voted on Thursday to suspend its debt ceiling until January 2025, narrowly averting the threat of default.
According to Michael Hewson, analyst at CMC Markets, attention is now focused on the state of the global economy and, more specifically, on the growing evidence of a marked slowdown in inflation. This is greater than expected, combined with signs of weak demand. Central banks will have to decide whether to slow down or suspend their rate hikes, which were put in place to control high inflation, according to the analyst.
Investors have differing views on the stance the US Federal Reserve (Fed) will take at its next meeting, less than two weeks away, “between a further 25 basis point hike and a pause followed by a hike in July”, according to Hewson. “Today’s US employment figures could provide an answer to this question”.
195,000 additional jobs
Analysts are forecasting an additional 195,000 jobs and a slight rise in the unemployment rate to 3.5%. However, Swissquote Bank analyst Ipek Ozkardeskaya warns that key indicators have regularly exceeded forecasts “in recent months”.
In her view, the Fed is likely to “stop raising interest rates if it sees weaker employment figures, slower wage growth and higher unemployment”.
Read also >World stock markets and luxury stocks still in decline
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European stock markets opened higher on Friday, continuing their positive momentum of the previous day. The threat of default by the United States was averted by an overnight vote in Congress.
Global stock markets maintained their positive trend on Friday. This followed the averting of the threat of US default, thanks to the overnight Congressional vote, and ahead of the release of a key US employment indicator.
In Europe, Paris rose by 1.22%, London by 0.91%, Frankfurt by 0.97% and Milan by 0.63% at around 11:30 a.m.
Asian markets performed very well, particularly Hong Kong, which closed up over 4%, boosted by technology stocks. Tokyo also ended sharply up by 1.21%, while Shanghai closed +0.79%.
Suspension of US debt
European indices opened “higher this morning after the (unsurprising) passage of a bill by the Senate to suspend the US debt ceiling”, “putting an end to a typically American psychodrama” that had kept investors in suspense, according to Mirabaud investment expert John Plassard.
After lengthy negotiations, the US Congress voted on Thursday to suspend its debt ceiling until January 2025, narrowly averting the threat of default.
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European stock markets opened higher on Friday, continuing their positive momentum of the previous day. The threat of default by the United States was averted by an overnight vote in Congress.
Global stock markets maintained their positive trend on Friday. This followed the averting of the threat of US default, thanks to the overnight Congressional vote, and ahead of the release of a key US employment indicator.
In Europe, Paris rose by 1.22%, London by 0.91%, Frankfurt by 0.97% and Milan by 0.63% at around 11:30 a.m.
Asian markets performed very well, particularly Hong Kong, which closed up over 4%, boosted by technology stocks. Tokyo also ended sharply up by 1.21%, while Shanghai closed +0.79%.
Suspension of US debt
European indices opened “higher this morning after the (unsurprising) passage of a bill by the Senate to suspend the US debt ceiling”, “putting an end to a typically American psychodrama” that had kept investors in suspense, according to Mirabaud investment expert John Plassard.
After lengthy negotiations, the US Congress voted on Thursday to suspend its debt ceiling until January 2025, narrowly averting the threat of default.
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