European stock markets traded higher Thursday, with investors optimistic of a deal to lift the U.S. debt ceiling while awaiting comments from ECB chief Christine Lagarde. Investors have been buoyed by the apparent determination of President Joe Biden and top U.S. congressional Republican Kevin McCarthy to reach an agreement soon. The drama has been unfolding for weeks, since the government officially hit the ceiling of $31.4 trillion in January.
In the corporate sector, BT Group (LON:BT) stock slumped 8% after the telecoms giant announced plans to cut between 40,000 and 55,000 jobs by the end of the decade. Burberry (LON:BRBY) stock fell 6.6% with investors taking profits even after the luxury fashion brand reported an increase in full-year revenue and sales. Deutsche Bank (ETR:DBKGn) stock rose 0.7% after the German lender agreed to pay $75 million to settle a lawsuit by women who say they were abused by the late financier Jeffrey Epstein.
Oil prices retreated Thursday, handing back some of the previous session’s solid gains as markets awaited more news on the potential lifting of the U.S. debt ceiling. Crude prices rallied over 3% on Wednesday on optimism that a deal on raising the U.S. debt limit could shortly be reached. By 04:10 ET, U.S. crude futures traded 0.5% lower at $72.47 a barrel, while the Brent contract dropped 0.5% to $76.60. Additionally, gold futures fell 0.4% to $1,975.35/oz, while EUR/USD traded 0.2% lower at 1.0814.