European Stocks Close Higher as Traders Monitor U.S. Debt Ceiling Talks; Germany's DAX Hits Record High

Getty Images

This is CNBC's live blog covering European markets.

European markets closed higher Friday as U.S. debt ceiling talks boosted investor sentiment.

The pan-European Stoxx 600 index closed up 0.77%, with all sectors in the green bar retail, which dipped 0.8%. Financial services led gains, with a 2.2% uptick, followed by construction stocks, which were up 1.56%.

German stocks extended the previous day's gains, with the DAX index climbing 0.8% to close at 16,275.38, an all-time high.

Tesco shares traded 0.5% lower after the supermarket chain said Chairman John Allan would step down at its shareholder meeting on June 16, following reported allegations of inappropriate behavior.

Traders will be keeping an eye on the Group of Seven summit in Hiroshima, which started Friday, where world leaders are expected to discuss international trade and security. China and Russia relations and sanctions are on the agenda for discussions between Canada, France, Germany, Italy, Japan, the United Kingdom and United States.

Over in Asia, the Japanese market continued its winning streak, with stocks surging to their highest level since 1990 and most other Asia-Pacific markets also seeing an uptick.

U.S. stocks were also chipper, with the S&P 500, Dow Jones Industrial Average and Nasdaq-100 all headed for weekly gains.

Stocks on the move: Volvo Cars up, JD Sports down

With European stocks broadly higher, Volvo Cars, UBS and BT were among the top performers in late trade.

British telco BT on Thursday announced a swathe of job cuts to be carried out before 2030.

At the other end of the Stoxx 600 index, JD Sports fell 7.5%. The company reported sales growth in full-year earnings on Wednesday and said it expected underlying profit to surpass £1 billion ($1.246 billion) for the first time; but analysts said investors appeared concerned by a hefty adjusted item charge from acquisitions and disposals and a warning of macro-economic headwinds.

— Jenni Reid

S&P 500 opens higher

The S&P 500 traded 0.2% higher, while the Dow and Nasdaq also climbed slightly.

— Fred Imbert

High interest rates could benefit telcos like BT in the near term, says analyst

James Ratzer, partner at New Street Research, discusses the latest developments in the telecom sector.

The UK is the ‘sick child’ of markets: BNY Mellon

Mike Horan, head of EMEA trading at BNY Mellon, says inflation in the U.K. is sticky, and explains why it's the "sick child" among its U.S. and EU counterparts.

G-7 won’t succeed in making China change its position on Russia, says professor

Stephen Nagy, professor at the International Christian University, discusses the G-7 meeting in Hiroshima, and explains the key themes that will be covered.

CNBC Pro: Outperforming fund manager is bullish on these cybersecurity stocks, citing more room for growth

Cybersecurity is one area that presents an opportunity for investors right now, according to portfolio manager Philip Ripman of Storebrand Asset Management.

Ripman, who manages the $1 billion Storebrand Global Solutions sustainable fund, is bullish on two cybersecurity firms.

He also explains why he doesn't hold the typical mega-cap tech names in his fund.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Japan's core inflation nationwide rose 3.4% in April

Japan's core inflation nationwide rose 3.4% year-on-year in April, in line with forecasts by economists polled by Reuters.

The reading ticked up higher from the previous month's inflation rate of 3.1% and marked levels above the central bank's target of 2%.

Overall inflation also ticked up from 3.2% in March to 3.5% in April.

The Japanese yen strengthened 0.2% to 138.42 against the greenback after the U.S. dollar index rose past 103.5 overnight, marking its highest point in about two months.

— Jihye Lee

U.S., Taiwan reach first agreement as part of trade initiative

The United States and Taiwan reached an agreement on a number of trade items, marking a deal on the first part of the bilateral "21st Century Trade" initiative.

The first agreement under the initiative includes: customs administration and trade facilitation, good regulatory practices, services domestic regulation, anticorruption, and small and medium-sized enterprises, the United States Trade Representative said in a release.

US trade representative Katherine Tai said of the agreement, "This accomplishment represents an important step forward in strengthening the U.S.-Taiwan economic relationship."

The agreement comes in the face of increased pressure from China, warning against deepening bilateral engagement between the U.S. and Taiwan.

— Jihye Lee

European markets: Here are the opening calls

European markets are expected to open higher on the final day of the trading week.

IG data suggests the FTSE 100 will gain 22.2 points to sit at 7,767.1, while Germany's DAX index will move to 16,249.7 with a 82.1 point uptick. France and Italy's major indexes echo the positive sentiment, with the CAC 40 expected to gain 34.2 points to 7,481.5 and the FTSE MIB up 122.3 points to 27,139.8.

— Hannah Ward-Glenton

Copyright CNBC
Contact Us