European stocks closed higher after the US debt ceiling agreement

There is no safe way to play the AI-driven technological rally, says Peter Twogood, chief investment officer of the Embark Group.

The three major US indices traded higher as Friday’s session began.

Dow Jones added more than 200 points, up about 0.7%. The S&P 500 rose 0.8%, while the Nasdaq Composite rose 1%.

– Alex Haring

British veterinary drug Dechra Pharmaceuticals rose 8% on news of a deal with Swedish investment firm EQT. EQT will acquire Dechra private for £4.88 billion ($6.16 billion), Reuters reported, and each shareholder will receive £38.75 in cash per share.

Shares of Socotra rose 8% after the company reported positive results. The medical imaging information technology and cybersecurity company’s operating profit beat previous records, according to a press release, while recurring revenue increased.

The company also announced on Thursday that it will supply some of its cloud service technology to two Belgian hospitals.

SBB shares were up 27% at 10am London time after that Bloomberg reported The struggling Swedish property group has attracted interest from investors including Brookfield Asset Management.

The company’s stock price has steadily fallen to an all-time low over the past year and a half, as it struggles with rising interest rates, housing market uncertainty, and a large debt pile.

It confirmed last week that it was exploring strategic options, including “the sale of the company, business segments or specific assets”.

Losses accelerated on Wednesday when holding company Ilija Batljan Invest AB announced He said It will stop interest payments on its SBB-based hybrid bonds, after suspending SBB dividend payments.

Manufacturing activity in France increased by 0.7% in April, after declining by 1.1% during the previous month, official statistics show up. Overall manufacturing activity rose 0.8%.

Production during the February-April period rose 1.6% from a year earlier.

However, the French statistics agency Insee said energy-intensive industries are still vulnerable to higher production costs.

The figures also showed the impact of French refinery strikes, which were at their strongest in March. April production of coke and refined oil added 23.6% after declining by 45.2%.

Separately, investors await S&P’s announcement on France’s credit rating on Friday, which It can be seen that it has been reduced It is rated “AA”.

– Jenny Reed

European stock markets were upbeat early on Friday, with the benchmark Stoxx 600 index up 0.4% at 8:30 a.m. London time.

Most sectors saw gains, with mining stocks rising 1.7% and oil and gas gaining 1% as the healthcare sector fell 0.4%.

France’s CAC 40 rose 0.74% while Germany’s DAX and Britain’s FTSE 100 rose 0.64% and 0.5%, respectively.

European markets are expected to open higher on Friday, according to data from IG.

It looks like the UK’s FTSE 100 will open 20.7 points higher at 7,518; German DAX rose 91.5 points to 15,942 points; The French CAC index rose 37.4 points to 7,169 points. Italian MIB rose 115 points to 26,697.

– Jenny Reed

The Senate passed a bill Thursday night to raise the debt ceiling, sending it to President Joe Biden’s desk.

He is expected to sign the legislation on Friday, to prevent what would have been the United States’ first sovereign debt default.

The Senate-passed compromise bill was cleared by the House by a margin of 63-36, garnering enough bipartisan support to pass the 60-vote threshold in the chamber to avoid a filibuster.

US stock futures were slightly higher before the vote and held at those levels after the bill was passed. Futures contracts linked to the Dow Jones Industrial Average rose nearly 30 points.

Christine Wang, Christina Wilkie

Oil prices traded slightly above the flat line as traders look forward to the OPEC+ meeting this weekend.

Global benchmark Brent crude fell 0.2% to $74.44 a barrel on Friday, while US West Texas Intermediate crude futures fell 0.24% to $70.27 a barrel.

“if [OPEC] “Don’t do anything, we could see prices really sell off, we’ve seen them sell off this week,” said Matt Smith, principal oil analyst at Kpler.

The oil cartel is unlikely to deepen production cuts at the next meeting, Reuters reported Quoting sources from the coalition.

Smith predicts that Brent prices could drop to $70 a barrel if OPEC maintains the status quo.

HSBC wrote in a report dated June 1 that “oil prices fell sharply in May, with the benchmark WTI dipping below $70 per barrel,” and the bank noted that the decline came despite OPEC+ announcements of production cuts. previously announced and which came into effect during the month.

Aside from the uncertainty surrounding the face of the US debt ceiling, weak growth indicators in China also weighed on prices, the report noted.

– Lee Ying Chan

Global AI revenue will reach $180 billion this year and grow to nearly $2 trillion by 2030 — and will be a major driver of semiconductor revenue, says Morgan Stanley.

Investors are already buying into the artificial intelligence buzz. Nvidia shares rose last week after it reported earnings that beat previous expectations.

Morgan Stanley has named one stock that will be a “principal beneficiary of the NVDA AI opportunity.”

CNBC Pro subscribers can read more here.

– Wizen tan

Data on nonfarm payrolls, the unemployment rate and hourly wages due on Friday will highlight the challenges the Fed faces ahead of its June policy meeting, according to Joe Davis, chief economist at Vanguard.

Economists polled by Dow Jones had expected non-farm payrolls to increase by 190K in May, which is a smaller monthly increase than the 253K added in April. They expect an unemployment rate of 3.5%, just above 3.4% in April.

Hourly wages are expected to grow 0.3% month over month and 4.4% compared to the same month last year. In April, wages increased by 0.48% on a monthly basis and 4.45% on an annual basis.

“We believe tomorrow’s labor market report will highlight the challenges the Fed continues to face in its effort to drive inflation toward target,” Davis said. “We still believe they should raise interest rates in June to enforce their resolve before pausing for some time to assess the impact on macro conditions, although the most important aspect in our views remains the Fed on hold until the end of the year.”

He added that “indications of continued labor market tightening in tomorrow’s report will provide further support for these views.”

– Alex Haring