European Stocks Close Higher Amid Signs Of Progress In U.S. Debt Ceiling Talks

(RTTNews) - European stocks shrugged off a late morning setback and closed on a strong note on Friday as firm commodity prices and signs of progress in U.S. debt ceiling talks lifted sentiment and prompted investors to indulge in some significant buying.

Reports suggested earlier in the day that U.S. lawmakers are inching closer to an agreement that would raise the debt limit for about two years and cap federal spending at the same level as fiscal 2023 for two years.

Data showing a jump in retail sales in the U.K. helped as well. Official data showed U.K. retail sales recovered in April driven by food and non-food turnover.

The retail sales volume increased 0.5% month-on-month, in contrast to the 1.2% fall in March. Sales were forecast to grow more moderately by 0.3%. On a yearly basis, retail sales dropped at a slower pace of 3% percent, in line with expectations, after a 3.9% decrease in March.

France's consumer confidence remained unchanged in May, survey results from the statistical office INSEE showed on Friday. The consumer confidence index held steady at 83 in May, while the score was forecast to rise to 84.0.

The pan European Stoxx 600 gained 1.15%. The U.K.'s FTSE 100 gained 0.74%, Germany's DAX surged 1.2% and France's CAC 40 climbed 1.24%, while Switzerland's SMI advanced 0.96%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Russia, Spain, Sweden and Turkiye closed higher.

Czech Republic, Norway and Portugal ended weak.

Tech stocks traded mostly higher following positive earnings from U.S. chipmaker NVIDIA. Miners were in demand after metal prices moved up.

In the UK market, Rio Tinto gained about 4% following a rating upgrade of the stock. BHP and M&G also ended with strong gains.

Carnival, Anglo American, Centrica, Auto Trader Group, 3i, Experian, Ashtead, Ferguson, JD Sports Fashion, Relx, Bunzl and Glencore gained 1.4 to 2.5%.

Polymetal International tumbled more than 5%. Land Securities declined 2.5%. Vodafone, British Land Company, Taylor Wimpey, SSE and ITV lost 1 to 2%.

Shares of cybersecurity company Darktrace plunged nearly 11% on weak results. Technology stock Kin & Carta dropped 9% after the company lowered its annual earnings guidance.

In the German market, Infineon and Continental surged 4.5% and 4.3%, respectively. Porsche climbed 2.7%. BASF, Daimler Truck Holding, Deutsche Post, Siemens, Bayer, Mercedes-Benz, Siemens Energy, Covestro, Siemens Healthineers, Puma and SAP gained 1.5 to 2.3%.

In Paris, STMicroElectronics rallied nearly 4%. LVMH, Hermes International, Dassault Systemes, Renault, Stellantis and Legrand gained 2 to 2.5%.

ArcelorMittal, Schneider Electric, Capgemini, Essilor, Kering, Safran, TotalEnergies, Michelin and Publicis Groupe moved up 1 to 1.8%.