European shares rise ahead of US non-farm payrolls data

Global stocks and US futures rose on Friday after the US Congress voted in favor of lifting the country’s debt limit, while investors awaited new data to gauge the Federal Reserve’s next policy move.

The pan-European Stoxx 600 was up 1 percent in the morning, while France’s CAC 40 rose 1.3 percent and Germany’s DAX 1.1 percent.

Investors will be closely watching the US unemployment report to be published before the opening of Wall Street, which will signal the central bank’s path for monetary policy.

Data from the US Labor Department show non-farm payrolls are expected to rise 190,000 in May, according to a consensus poll of Reuters estimates.

Wall Street’s benchmarks tracking the S&P 500 contracted and the tech-heavy Nasdaq 100 advanced 0.5 percent ahead of the New York open. The move comes a day after both the indices closed at their highest levels since August 2022.

Meanwhile, the US Senate on Thursday approved a deal between the White House and congressional Republicans to lift the country’s $31.4tn debt ceiling for two years in exchange for cuts in government spending.

The agreement ended a weeks-long political standoff that had risked triggering an unprecedented debt default in the world’s biggest economy. The benchmark S&P 500 rose to a nine-month high overnight.

“We can start to move forward in that regard by focusing on what matters more. . . at the end of the day the data and What matters is the fundamentals.”

London-listed Dechra shares rose 8.2 per cent after the veterinary drug company agreed a £4.5bn buyout by Sweden’s EQT, in what would be one of the biggest UK private equity deals ever. London’s FTSE 100 rose 0.9 percent.

There was a glow in the markets of Asia. Hong Kong’s Hang Seng index led the sector, rising 4 percent, as internet and tech stocks led the rebound from their lowest point of the year on Thursday.

The CSI 300 index of China’s Shanghai- and Shenzhen-listed shares added 1.4 percent. South Korea’s Kospi rose 1.3 percent and Japan’s Topix rose 1.6 percent.

The resolution of the debt ceiling also boosted oil prices, with West Texas Intermediate, the US marker, trading 1.7 per cent higher at $71.29 a barrel, while international benchmark Brent crude rose 1.6 per cent to $75.48.

The dollar slipped 0.1 per cent against a basket of six other currencies.