European stocks and US futures rose on Thursday after US lawmakers moved to defer a government shutdown.
Germany’s DAX rose 0.1 per cent to 15,378.85 while the CAC 40 in Paris rose 0.5 per cent to 6,593.48. The FTSE 100 in London also closed 0.5 per cent higher at 7,146.51.
The future of the Dow Industrials was 0.7 percent higher while the S&P 500 also rose 0.7 percent.
Investors are eyeing Washington, where Democrats and Republicans in Congress are wrestling to raise the country’s debt limit.
Congress has moved to avert that crisis, with the Senate set to approve legislation to fund the federal government in early December.
The House was expected to approve the measure after a Senate vote on Thursday, pausing a partial government shutdown when the new fiscal year begins Friday.
If the limit, which is the limit on the amount of money the federal government can borrow, is not raised by October 18, the country will face “a financial crisis and an economic downturn,” Treasury Secretary Janet Yellen told Congress on Wednesday. .
Yellen’s remarks came a day after Senate Republicans stopped considering a bill that would have raised the debt limit.
Asian shares were mostly higher, though Tokyo’s Nikkei 225 index fell 0.3 per cent to 29,452.66 after disappointing factory and retail sales figures were released.
Japanese investors chose former Foreign Minister Fumio Kishida to lead the ruling Liberal Democrats and thus become the next prime minister.
Kishida is expected to boost government spending, but retain most of the current policies aimed at supporting the world’s third-largest economy.
Shares of China Evergrande Group fell 3.9 percent as reports suggested the company, which is struggling to reduce its debt, is likely to make another payment on bonds.
Shares of Evergrande jumped on Wednesday when it announced it was selling a stake in Shengjing Bank to help pay off a 10 billion yuan ($1.6 billion) debt to a state-owned lender based in northeast China.
Hong Kong’s Hang Seng index fell 0.4 per cent to end at 24,575.64.
The Shanghai Composite Index rose 0.9 percent to 3,568.17 and Australia’s S&P/ASX 200 jumped 1.9 percent to 7,332.20. In Seoul, the Kospi ended 0.3 per cent higher at 3,068.82.
The yield on the 10-year Treasury used to set the interest rate on several types of loans dropped from 1.53 percent to 1.52 percent.
The S&P 500 rose 0.2 percent to 4,359.46 on Wednesday, with most gains of 0.8 percent. For the month the S&P 500 was down 3.6 percent with a day left.
The Dow Jones Industrial Average also lost momentum, but gained 0.3 per cent to 34,390.72, while the tech-heavy Nasdaq Composite gave up 0.2 per cent to 14,512.44.
The Russell 2000 Index of smaller companies also closed at 2,225.31, down 0.2 per cent.
Bond yields have risen in the past one week and this has weighed on the market, especially technology stocks. The high returns have forced investors to reevaluate whether prices are too high for the shares, as it makes them look expensive by comparison.
The next few weeks will bring a fresh round of corporate earnings that will give investors insight into how supply chain problems and high costs are affecting corporate finances.
In other trade, US benchmark crude oil rose 38 cents to $75.21 a barrel in electronic trading on the New York Mercantile Exchange on Thursday. It rose 46 cents to $74.89 a barrel on Wednesday.
Brent crude oil rose 38 cents to $78.35 a barrel.
The US dollar fell from 111.96 yen to 111.90 Japanese yen. The euro rose from $1.1599 to $1.1602.
by Elaine Kurtenbach
This News Originally From – The Epoch Times