Europe Stocks Rise After Hitting Two Month Lows – Crypto News – Crypto News
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Europe Stocks Rise After Hitting Two Month Lows – Crypto News

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European stock markets opened higher Friday morning as the US passed a bill to raise the debt ceiling and cap government spending for two years, averting a global economic catastrophe.

The Stoxx 600 The index is currently trading 1% up, as it climbed further from the two-month low hit on Wednesday. Mining stocks also showed gains, up 2.6%, while oil and gas climbed 1.3% ahead of the June 4 OPEC+ meeting.

The debt ceiling bill passed the Senate vote late Thursday, after passing the House of Representatives on Wednesday.

All eyes on US economy

The uncertainty around the debt ceiling bill has only slightly rattled markets in the past month. Now all eyes turn to the outlook for the US economy, recession risk, and whether the Federal Reserve will raise, pause or even look at beginning to cut interest rates.

As reported earlier, recent comments from officials have indicated the central bank may opt to skip another hike at its June meeting. However, the picture is complicated by continued strength in US data, including in consumer spending and manufacturing orders. Friday will see the release of a closely-watched labor market report.

ECB chief signals more rate hikes

In Europe, there has been a significant fall in euro zone inflation since Feb. 2022. However, European Central Bank President Christine Lagarde said the 6.1% figure was still “too high” and that the hiking cycle needed to continue until it was clear inflation would come down to its 2% target in a “timely manner.”

The ECB president is hinting that it will raise rates again this month, but economists say the outlook for July and September is more uncertain.

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, covering breaking news, and writing editorials. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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