European stocks rose on Thursday morning as the U.S. Congress continued talks regarding raising the government’s debt ceiling. Investor confidence grew amid hopes that an agreement would be reached before the June 1 deadline despite previous concerns of a deadlock in negotiations.
The Stoxx Europe 600 was up by 0.5% at 10:07 A.M. in London. Across the Atlantic, New York stocks remained stagnant, with both the S&P 500 and Dow Jones Industrial Average little changed. Contracts on the Nasdaq 100 edged higher by 0.1%.
Hopes for a debt ceiling consensus were raised as U.S. banks and lenders showed signs of recover this past week. Banking stocks widely advanced after Western Alliance reported an increase in deposits, thereby subduing concerns of an exodus of depositors.
“If the headwinds of banking crisis and debt ceiling recede and consumers stays reasonably resilient, the recession risk may recede,” Roger Lee, head of UK equity strategy at Investec Bank Plc. claimed with regard to the banking sector’s recovery.