Stocks lifted to month high by U.S. debt ceiling hopes

Global shares hit a one-month high on Friday as markets reflected increased hopes of a U.S. debt ceiling deal that could avoid a potentially calamitous default.

Europe’s STOXX 600 (.STOXX) was up 0.7%, while e-mini futures for the S&P 500 rose 0.2%, following a 0.9% gain for the benchmark Wall Street index overnight.

MSCI’s broadest index of global shares (.MIWD00000PUS) was up 0.2%, hitting its strongest level since mid-April and on course for its biggest weekly gain since late March.

Against a basket of currencies, the dollar was steady on the day, having hit its highest since March 20 earlier in the session. The euro reached its lowest in almost two months, at $1.0771, before recovering to $1.079. Sterling , at $1.2405, was near its weakest since April 25.

The moves came after Democratic negotiators told President Joe Biden they were making “steady progress” on a deal to lift the U.S. debt ceiling and avoid a default by the world’s largest economy, whose currency and Treasury debt markets underpin global trade and investment.

The U.S. government may default on some debt as early as June 1 unless Congress votes to lift the debt ceiling.

This report’s information was first seen on REUTERS; to read more, click this link.