Global shares rose on Thursday amid receding bets for a U.S. rate hike this month and relief over 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 U.S. 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.
“It’s very hard to believe this isn’t going to be even more of a formality in the Senate,” said Ray Attrill, head of foreign exchange strategy at National Australia Bank.