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European stocks rose for a fourth day, the longest winning streak in two months, amid optimism Senate leaders will forge a deal to reopen the U.S. government and avoid a breach of the debt limit. U.S. index futures were little changed, while Asian shares advanced.
The Stoxx Europe 600 Index rose 0.8 percent to 314.81 at 10:23 a.m. in London, its highest level in three weeks. The gauge has advanced 1.4 percent in October even as U.S. lawmakers struggled to agree on a budget, forcing the first partial government shutdown in 17 years. Standard & Poor’s 500 Index futures added 0.2 percent, while the MSCI Asia Pacific Index climbed 0.4 percent today.
U.S. Senate Majority Leader Harry Reid, a Democrat, said “tremendous progress” had been made during negotiations, though “we are not there yet.” Leaders are working on an deal to suspend the debt ceiling through Feb. 7 and fund the government through Jan. 15, a person familiar with the talks said, speaking on the condition of anonymity.
The possible deal could still face procedural delays in the Senate and an uncertain path in the Republican-controlled House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or make changes. Should Congress fail to act, the U.S. government would run out of borrowing authority in two days and start missing debt payments sometime between Oct. 22 and Oct. 31, according to the Congressional Budget Office.
The U.S. will not default, former Treasury Secretary Lawrence Summers said in Seoul today. Senate Minority Leader, Republican Mitch McConnell, said he shares Reid’s optimism after talks in Washington.
German investor confidence increased for a third month in October. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, rose to 52.8 from 49.6 in September. That’s the highest since April 2010. Economists predicted no change, according to the median of estimates.
Rio Tinto rose 3.2 percent to 3,183 pence. The world’s second-largest mining company said it produced 53.4 million metric tons of iron ore in the three months to Sept. 30, compared with 52.6 million tons a year earlier. That compares with the 53.3 million-ton median estimate of analysts
Ashtead (AHT) gained 2.8 percent to 646.5 pence. JPMorgan raised its rating on the shares to overweight, similar to buy, from neutral, saying earnings may increase as much as 41 percent in fiscal year 2016 as its markets recover.
Man Group Plc (EMG) rallied 4.8 percent to 82.45 pence. UBS AG added the world’s largest publicly traded hedge-fund manager to its most-preferred list, citing the recent good performance of its GLG Partners unit.
FTSE 100 6,557.46 +49.81 +0.77%
CAC 40 4,244.83 +21.87 +0.52%
DAX 8,785.48 +61.67 +0.71%
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