# European shares rise on US debt deal optimism
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: European Shares Rise on US Debt Deal Optimism
Meta Description: European shares climb on deal to raise US debt ceiling and avert default. SBB shares jump after strategic review announcement.
URL: https://financedigest.com/european-shares-rise-on-us-debt-deal-optimismhtml

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# European shares rise on US debt deal optimism

(Reuters) – European shares rose on Monday as investors drew comfort from a tentative deal reached by U.S. lawmakers to raise the debt ceiling and avert a default.

The euro zone [stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "stocks") index climbed 0.4% by 0715 GMT, with the bloc’s banks among the top gainers. Trading volumes were light, with [markets in the United](https://www.financedigest.com/vapour-recovery-units-market-is-expected-to-register-a-decent-cagr-of-more-than-5-during-the-forecast-period-of-2019-2029.html "Vapour Recovery Units Market is expected to register a decent CAGR of more than 5% during the forecast period of 2019-2029") States, the UK and several European countries closed.

U.S. President Joe Biden on Sunday finalised a budget agreement with House Speaker Kevin McCarthy to suspend the $31.4 trillion [debt ceiling](https://www.financedigest.com/dollar-nudges-lower-as-u-s-debt-ceiling-deal-dents-safe-haven-appeal.html "Dollar nudges lower as U.S. debt ceiling deal dents safe-haven appeal") until Jan. 1, 2025, and said the deal was ready to move to [Congress for a vote](https://www.financedigest.com/u-s-congress-votes-to-strip-russia-of-most-favored-trade-status-ban-its-oil.html "U.S. Congress votes to strip Russia of ‘most favored’ trade status, ban its oil").

Shares of SBB jumped 6.2% after the struggling Swedish [real estate](https://www.financedigest.com/how-to-buy-income-producing-real-estate-without-your-own-money-or-credit.html "How to Buy Income-Producing Real Estate Without Your Own Money or Credit") group said it is broadening an ongoing strategic review, and options could include the sale of the company, business segments or assets. Fitch on Friday cut its [credit rating](https://www.financedigest.com/credit-suisse-group-rating-downgraded-by-sp.html "Credit Suisse Group rating downgraded by S&P") to so-called junk status, citing insufficient deleveraging.

Meanwhile, Turkish [President Tayyip Erdogan extended his two decades in power in elections](https://www.financedigest.com/slovenia-elects-first-female-president.html "Slovenia elects first female president") on Sunday, winning a mandate to pursue increasingly authoritarian policies, which have polarised the country and strengthened its position as a regional military power.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)


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