European stocks buoyed by US debt deal optimism

European stocks rose on Friday, with miners and real estate stocks in the lead as investors took comfort from the passing of the U.S. debt ceiling bill and hints that the Federal Reserve could pause its interest rate hiking cycle later this month. The pan-European STOXX 600 index was up 0.5% by 0712 GMT, with economically sensitive sectors such as miners , retailers and oil & gas rising the most.

European stocks rose on Friday, with miners and real estate stocks in the lead as investors took comfort from the passing of the U.S. debt ceiling bill and hints that the Federal Reserve could pause its interest rate hiking cycle later this month.

The pan-European STOXX 600 index was up 0.5% by 0712 GMT, with economically sensitive sectors such as miners , retailers and oil & gas rising the most. The U.S. Senate on Thursday passed bipartisan legislation backed by President Joe Biden that lifts the government's $31.4 trillion debt ceiling, averting what would have been a first-ever default.

Europe's real estate index also rallied 1.9% as government bond yields extended their recent slide on signs that price pressures are easing faster than expected in the euro zone. Shares of German sportswear makers Puma SE and Adidas AG rose 3.9% and 3.2%, respectively, after U.S. retailer Lululemon Athletica Inc raised its annual sales and profit forecasts.

ProSiebenSat.1 rose 1.9% after Czech investment group PPF raised its stake in the German media group to 15.04% in stock and instruments.