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Stock markets mostly rally on US debt deal hope

AFP . London
20 May 2023 00:00:00 | Update: 19 May 2023 22:55:52
Stock markets mostly rally on US debt deal hope

Global equities mainly rallied Friday as traders grew increasingly hopeful that US lawmakers will hammer out a deal to lift the debt ceiling and avert a confidence-shattering default.

Frankfurt, London and Paris pushed higher around the half-way stage and after a largely buoyant Asian session, although Hong Kong and Shanghai slid on Chinese economic worries. The dollar declined and oil prices advanced.

“Investors continue to respond positively to the optimistic discussions surrounding the debt-ceiling issue in Washington, which have bolstered market sentiment towards equities,” noted ActivTrades analyst Pierre Veyret.

After weeks of lumbering talks on Capitol Hill, congressional leaders appeared ready to put a proposal to lawmakers before the government runs out of cash, said to be around June 1.

Republican House Speaker Kevin McCarthy said: “We’re not there -- we haven’t agreed to anything yet -- but I see the path (where) we could come to an agreement.”