European stocks slipped on Monday after kicking off on a positive note in early trading hours over-optimism of the US debt ceiling being suspended.
US President Joe Biden and House Speaker Kevin McCarthy finally agreed on a deal to suspend the $31.4 trillion debt ceiling to save the US from defaulting for the first time. Investors were rejoicing the decision during the opening hours in the European markets. Although trading momentum remained thin due to the closed US and UK markets.
In early trade, European indexes were rising but then faltered. Germany’s DAX and France’s CAC 40 showed losses of 0.11%, while Europe’s STOXX 600 remained flat at 5 pm. But Wall Street futures rose, with S&P 500 e-minis up 0.2% and Nasdaq e-minis up 0.37%.
Meanwhile, Benchmark indices in India closed higher. The Nifty 50 and the Sensex gained half a percentage point.
Prudent optimism prevailed across industries, with some reporting small rises while others stayed relatively steady. In terms of gains, the automobile and banking industries led the way.
Government bond yields in the eurozone fell ahead of eurozone inflation statistics scheduled on Wednesday and Thursday. The benchmark 10-year German yield was 2.447, down 9 basis points.
The US dollar index was unchanged at 104.25, while the euro was slightly down at $1.0714.
Brent crude futures were down 0.2%, while West Texas Intermediate crude in the United States was little changed. Gold was likewise little changed, holding near two-month lows set on Friday.