European Shares Seen Up As US House Clears Debt Ceiling Bill

European stocks may open on a steady note Thursday after the bill to raise debt limit and cap government spending in the U.S. was passed by a wide margin on late Wednesday, days before the world’s biggest economy is due to start defaulting on its debt.

The U.S. Senate must vote on the bill later this week before President Joe Biden can sign it into law.

Asian markets advanced after a private survey showed China’s factory activity unexpectedly swung to growth from a decline in April. The Caixin/S&P Global manufacturing PMI edged up to 50.9 in May from 49.5 in April.

The dollar retreated from a two-week high, helping spur demand for bullion. Oil prices also traded higher after two days of heavy losses.

U.S. stocks declined overnight as investors awaited the crucial vote on a bipartisan deal to suspend the government debt ceiling and set federal funding limits.

In economic releases, job openings rose unexpectedly in April, giving the Federal Reserve more reason to raise interest rates further if inflation stays high.

The Dow eased 0.4 percent, while the S&P 500 and the tech-heavy Nasdaq Composite both fell around 0.6 percent.

European stocks tumbled on Wednesday as investors fretted about China’s uneven economic recovery and prospects of further interest rate hikes by the Federal Reserve and other leading central banks.

The pan European STOXX 600 dropped 1.1 percent. The German DAX and France’s CAC 40 both lost about 1.5 percent while the U.K.’s FTSE 100 shed 1 percent.

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