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Global shares gain on US debt bill passage, Fed pause talk

Agencies . London
02 Jun 2023 00:00:00 | Update: 02 Jun 2023 01:04:57
Global shares gain on US debt bill passage, Fed pause talk

Global shares rose on Thursday as traders pared back expectations of a U.S. rate hike this month and were relieved by the passage through the U.S. House of Representatives of a bill to suspend the federal debt ceiling.

A divided House passed a bill to suspend the $31.4 trillion debt ceiling - and avert a catastrophic default - with majority support from both Democrats and Republicans, stoking optimism that it can move through the Senate before the weekend.

The pan-European STOXX 600 index (.STOXX) rose 0.8% after closing at a two-month low in the previous session. US S&P 500 e-Mini futures were 0.3% higher, reported Reuters.

The US legislation in essence temporarily removes the federal government's borrowing limit through Jan. 1, 2025. The timeline allows President Joe Biden and Congress to set aside the politically risky issue until after the November 2024 presidential election.

The MSCI world equity index (.MIWD00000PUS), which tracks shares in almost 50 countries, added 0.3%.

Earlier, MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) gained as much as 0.8% before giving up about half of its gains.