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Europe Stocks Mixed As Debt Ceiling Talks Continue, Germany’s DAX Falls

Europe Stocks Mixed As Debt Ceiling Talks Continue, Germany’s DAX Falls


oi-Renu Baliyan


European markets were mixed Thursday as negative sentiment seen yesterday on the back of ongoing U.S. debt ceiling negotiations continued to weigh, according to a CNBC report.

The benchmark Stoxx 600 index was choppy through the morning, moving between narrow losses and gains. Tech stocks shot 2.1% higher, following Nasdaq-100 futures in the U.S., but other gains were muted, while food and beverage stocks fell 1%.

Europe Stocks Mixed As Debt Ceiling Talks Continue, Germany's DAX Falls

Data from the German statistics office on Thursday showed a downward revision to gross domestic product from zero to -0.3% for the first three months of the year, placing Europe’s biggest economy in a technical recession.

Germany’s DAX fell 0.4% after statistics showed the country entered a technical recession in the first quarter. The U.K.’s FTSE 100 and France’s CAC 40 lost 0.5% and 0.6%, respectively. The German economy entered a technical recession in the first quarter of this year, as households tightened spending, as per the CNBC report.

Meanwhile, Fitch Ratings placed the United States’ AAA rating on a negative rating watch, saying the debt ceiling negotiations have raised the risks that the government could miss payments on some of its obligations. However, Fitch said it still expects a resolution to be found; U.S. debt ceiling negotiations continue, stated the CNBC report.

U.S. futures tied to the Nasdaq-100 as well as the S&P 500 were sharply higher despite the tensions, boosted by optimism around software firm Nvidia, which beat estimates and issued stronger-than-expected revenue guidance, added the CNBC report.

Elsewhere, Asia-Pacific markets were largely lower amid lingering concerns over debt ceiling negotiations and as the Bank of Korea held its benchmark interest rate steady for the third consecutive time.

Story first published: Thursday, May 25, 2023, 18:11 [IST]

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