European stocks open higher after US debt ceiling deal

Manufacturing activity in France rose 0.7% in April, following a 1.1% decline in the previous month. Official statistics showed. Overall industrial activity increased by 0.8%

Production in the February-April period was also 1.6% higher than a year ago.

However, French statistics agency Insee said energy-intensive industries were still exposed to higher production costs.

The figures also show the impact of French refinery strikes, which were particularly severe in March. April production of coke and refined petroleum added 23.6% after falling 45.2%.

Separately, investors await S&P’s announcement on France’s credit rating on Friday Could see it downgraded From “AA” rating.

– Jenny Reid

European markets opened higher on Friday, according to data from IG.

UK’s FTSE 100 up 20.7 points to open at 7,518; Germany’s DAX rose 91.5 points to 15,942; France’s CAC rose 37.4 points to 7,169; And Italy’s MIP rose 115 points to 26,697.

– Jenny Reid

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 legislation on Friday that would prevent the first U.S. sovereign debt default.

The House-approved compromise bill passed the Senate by a 63-36 margin, gaining enough bipartisan support to pass the chamber’s 60-vote threshold to avoid a filibuster.

U.S. stock futures were flat ahead of the vote and held those levels after the bill passed. Futures linked to the Dow Jones industrial average rose about 30 points.

– Christine Wang, Christina Wilkie

Oil prices traded slightly above the flatline as traders looked ahead to the OPEC+ meeting later this week.

Global benchmark Brent was down 0.2% at $74.44 a barrel on Friday, while U.S. West Texas Intermediate futures were down 0.24% at $70.27 a barrel.

“If [OPEC] “Don’t do anything. We can actually see prices sell off, and we’ve seen them sell off this week,” said Matt Smith, lead oil analyst at Kpler.

Oil cartel unlikely to deepen production cuts in upcoming meeting Reuters reported Citing coalition sources.

Smith predicts that Brent prices will fall to $70 per barrel for OPEC to maintain the current level.

“Oil prices fell sharply in May, with WTI benchmark falling below USD70/b,” HSBC wrote in a report dated June 1. The bank noted that the decline came despite previously announced OPEC+ production cuts that took effect this month.

Apart from uncertainty swirling around the US debt ceiling impasse, weaker growth indicators in China also weighed on prices, the report noted.

– Lee Ying Shan

Global artificial intelligence revenue will reach $180 billion this year and grow to nearly $2 trillion by 2030 — and will be a key driver of semiconductor revenue, according to Morgan Stanley.

Investors are already buying into the AI ​​buzz. Nvidia shares rose last week after reporting earnings that blew past expectations.

Morgan Stanley will be a “major beneficiary of NVDA’s AI opportunity,” per the stock.

CNBC Pro subscribers can read more here.

– Weissen Don

According to Joe Davis, Vanguard’s chief economist, data on nonfarm payrolls, the unemployment rate and hourly wages for Friday highlighted the challenges facing the central bank at its June policy meeting.

Economists polled by Dow Jones expected nonfarm payrolls to rise 190,000 in May, a smaller monthly increase than the 253,000 added in April. They forecast the unemployment rate at 3.5%, slightly higher than the 3.4% seen in April.

Hourly wages are expected to grow 0.3% on a monthly basis and 4.4% compared to the same month a year ago. In April, wages rose 0.48% month-on-month and 4.45% on an annualized basis.

“We believe tomorrow’s labor market report will underscore the challenges the Fed will continue to face in driving inflation back toward target,” Davis said. “We think they should raise rates in June before pausing to assess the impact on macro conditions, although the most important aspect of our outlook is the central bank holding off until at least the end of the year.”

“Signs of continued labor market tightening in tomorrow’s report will provide further support for these views,” he added.

– Alex Haring