European Stocks Rise on US Debt Deal Optimism
European stocks rose on Monday as investors grew optimistic about a potential US debt deal. The Stoxx Europe 600 Index climbed 0.7%, while the UK’s FTSE 100 Index rose 0.5%. Germany’s DAX Index gained 0.8%, and France’s CAC 40 Index rose 0.7%.
Gains Across Sectors
Gains were seen across sectors, with technology stocks leading the way. The Stoxx Europe Technology Index rose 1.2%, while the Stoxx Europe Health Care Index gained 0.9%. The Stoxx Europe Financials Index rose 0.7%, and the Stoxx Europe Consumer Discretionary Index rose 0.6%.
US Debt Deal Optimism
Investors were optimistic about a potential US debt deal after US President Joe Biden and Senate Republicans agreed to a framework for a $1.7 trillion package. The deal includes $1 trillion in spending on infrastructure, $400 billion in aid to state and local governments, and $300 billion in tax cuts.
BT Slumps
BT Group Plc slumped 8.3% after the company reported a drop in revenue and profit for the first quarter. The company said its revenue fell 4% to £5.3 billion, while its adjusted operating profit dropped 8% to £1.2 billion. BT also said it expects to cut up to 10,000 jobs over the next three years.
Airbus Gains
Airbus SE rose 2.3% after the company reported a jump in first-quarter profit. The company said its adjusted earnings before interest and taxes rose to €1.2 billion from €1 billion a year earlier. Airbus also said it expects to deliver more than 800 aircraft this year, up from 763 in 2020.
Banks Rise
Banks also rose on Monday, with the Stoxx Europe Banks Index gaining 0.9%. UBS Group AG rose 1.3%, while Credit Suisse Group AG gained 1.2%. Deutsche Bank AG rose 1.1%, and Barclays Plc rose 0.9%.
Oil Prices Rise
Oil prices rose on Monday, with Brent crude futures rising 0.7% to $68.41 a barrel. US crude futures rose 0.6% to $65.37 a barrel. The gains came after Saudi Arabia said it would cut production by 1 million barrels a day in June.
European Markets Summary
European stocks rose on Monday as investors grew optimistic about a potential US debt deal. Gains were seen across sectors, with technology stocks leading the way. BT Group Plc slumped 8.3% after the company reported a drop in revenue and profit for the first quarter. Airbus SE rose 2.3% after the company reported a jump in first-quarter profit. Banks also rose, with the Stoxx Europe Banks Index gaining 0.9%. Oil prices rose on Monday, with Brent crude futures rising 0.7% to $68.41 a barrel. US crude futures rose 0.6% to $65.37 a barrel.
Overall, the Stoxx Europe 600 Index climbed 0.7%, while the UK’s FTSE 100 Index rose 0.5%. Germany’s DAX Index gained 0.8%, and France’s CAC 40 Index rose 0.7%. Investors were optimistic about a potential US debt deal after US President Joe Biden and Senate Republicans agreed to a framework for a $1.7 trillion package. The deal includes $1 trillion in spending on infrastructure, $400 billion in aid to state and local governments, and $300 billion in tax cuts.
European Central Bank Stimulus
The European Central Bank (ECB) is expected to announce its latest stimulus package on Thursday. The ECB is expected to extend its bond-buying program and cut interest rates. The ECB is also expected to announce a new program to buy corporate bonds.
Outlook
European stocks are likely to remain volatile in the near term as investors await the ECB’s stimulus package. Investors will also be watching for any developments on the US debt deal. If a deal is reached, it could provide a boost to European stocks. However, if a deal is not reached, it could weigh on European markets.