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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