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European stocks closed higher on Thursday as U.S. lawmakers reached an agreement to temporarily extend the debt limit, avoiding a potential default.<\/p>\n
Senate Majority Leader Chuck Schumer, D-N.Y., announced an agreement to extend the debt ceiling through early December. The agreement would reportedly increase the debt limit by $480 billion, allowing the Treasury to continuing paying its bills through December 3rd.<\/p>\n
Markets also benefited from a drop in U.S. Treasury bond yields, and data showing a bigger than expected pullback in first-time claims for U.S. unemployment benefits in the week ended October 2nd.<\/p>\n
Meanwhile, anxiety over the energy price crunch eased after Russian president Vladimir Putin suggested that state-backed Gazprom could increase supplies to help Europe avoid a full-blown energy crisis.<\/p>\n
Investors shrugged off concerns about inflation and data showing a sharp drop in German industrial output in the month of August.<\/p>\n
Markets have now shifted their focus on the upcoming U.S. non-farm payrolls data, due on Friday.<\/p>\n
The U.S. jobs report is seen as crucial in influencing the timing of the start of winding down the Fed’s QE program.<\/p>\n
The pan Eurpean Stoxx 600 climbed 1.6%. The U.K.’s FTSE 100 gained 1.17%, DAX surged up 1.85% and France’s CAC 40 advanced 1.65%, while Switzerland’s SMI jumped 1.68%.<\/p>\n
Among other markets<\/span> in Europe, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Portugal, Russia, Spain, Sweden and Turkey ended notably higher.<\/p>\n Czech Republic and Poland edged up marginally, while Austria closed weak.<\/p>\n In the UK market, Antofagasta, Anglo American Plc, Standard Chartered, Johnson Matthey, BHP Group, Rio Tinto, Scottish Mortgage, Evraz, Aveva Group and Pershing Square Holdings gained 3 to 5.3%.<\/p>\n Workspace Group shares gained about 5%. The real estate investment trust company said that customer demand improved during the second quarter of fiscal 2022.<\/p>\n CRH, Intertek Group, Smurfit Kappa Group, ICP, HSBC Holdings, Royal Mail, IHF, Auto Trader Group and Entain also moved up sharply.<\/p>\n IAG, Natwest Group, Admiral Group, Ocado Group and Hargreaves Lansdown shed 1 to 2%.<\/p>\n In France, Faurecia climbed nearly 6.5%. Valeo ended almost 6% up. Saint Gobain, ArcelorMittal, Hermes International, Unibail Rodamco, WorldLine, Kering, Credit Agricole, Safran, Renault, LVMH and Societe Generale gained 2 to 4.5%.<\/p>\n In the German market, Sartorius rallied about 6%. Deutsche Bank, Daimler, Continental, Porsche Automobil, Linde, Puma, Covestro, BASF, BMW, Volkswagen, Bayer, Adidas, SAP and Siemens gained 1.7 to 4.3%.<\/p>\n TeamViewer shares fell 7% to extend losses from the previous session after the software company reported quarterly results below its own expectations and cut its full-year guidance.<\/p>\n Sika AG shares gained 3%. The Swiss specialty chemicals company confirmed fiscal 2021 targets, expecting sales growth in local currencies of 13 percent-17 percent as well as an over-proportional EBIT increase.<\/p>\n Spanish utility Iberdrola surged 7% after reports that the company is in talks with the Spanish government over energy pricing.<\/p>\n In economic releases, German industrial output fell 4% month-on-month in August, reversing a 1.3% rise in July, Destatis reported. Economists had forecast a monthly fall of 0.4%.<\/p>\n Compared with February 2020, the month before restrictions were imposed due to the corona pandemic, production was 9% lower in August.<\/p>\n On a yearly basis, industrial production gained 1.7% after rising 6% a month ago.<\/p>\n House prices grew 1.7% month-on-month in September, following an increase of 0.8% in August as stamp duty holiday draws to a close, survey data released by the Lloyds Bank subsidiary Halifax showed. This was the third consecutive rise in prices.<\/p>\n In three months to September, house prices grew 1.5% from the previous three months. The annual rate of house price growth increased to 7.4% from 7.2% in August. <\/p>\n<\/p>\n<\/div>\n