© Reuters. Electronic screens display the stock trading movement on the German DAX index on the Frankfurt Stock Exchange on March 23, 2023. Photo: Reuters.
(Reuters) – European stocks posted their best daily gains in two months on Friday, as investors were relieved by falling inflation in a region, the ratification of the US debt ceiling deal and mounting indications that the Federal Reserve will not raise rates this month.
The European index closed 1.5 percent higher, with real estate stocks among the best performers.
On Thursday, the US Senate passed legislation supported by President Joe Biden to suspend the government’s debt ceiling of $31.4 trillion, averting the country’s first default in its history.
And optimism prevailed among investors due to the decline in inflation in the euro area after data published on Thursday, which boosted hopes about the European Central Bank easing monetary tightening.
But ECB Executive Council member Fabio Panetta said he expected more interest rate hikes and indicated at the same time that the end of the monetary tightening cycle is nearing completion.
Shares of the Swedish real estate company (SBB) jumped 53.3 percent, achieving the highest gain on the Stoxx 600 index, which led the real estate sub-index to rise 4 percent.
German sportswear Puma and Adidas rose 6.4 percent and 5.8 percent, respectively, after US retailer Lululemon Athletica raised its annual forecasts for both sales and profits.
(Prepared by Mohamed Attia for the Arabic Bulletin – Edited by Marwa Gharib)
2023-06-02 18:13:00
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