FTSE 100, European stocks open higher amid US debt deal

London stocks increased in early trade on Friday after the US Senate passed a bi-partisan agreement to lift the debt ceiling, and as investors focussed on the most recent non-farm payrolls report

The FTSE 100 and European stocks opened higher Friday amid the passage of the US debt ceiling bill and an anticipated halt in the US’s cycle of interest rate raise.

The FTSE 100 added 0.45 per cent to 7,523 points at the open, while the CAC 40 added 0.72 per cent to 7,188 points. In Germany, the DAX declined 0.68 per cent to 15,961.

London stocks increased in early trade on Friday after the US Senate passed a bi-partisan agreement to lift the debt ceiling, and as investors focussed on the most recent non-farm payrolls report.

Miners were the top performers as copper prices increased, with Antofagasta, Anglo American, Glencore and Rio Tinto all higher.

NatWest shed 0.19 per cent after it confirmed it had lowered its stake in Ireland’s Permanent TSB.

Diageo was also down as Deutsche Bank repeated its sell rating. We believe consensus projections continue to be too bullish for Diageo and we note US alcohol inventories are presently at a 30 year high compared with shipments, the bank stated.

Shares of Dechra Pharmaceuticals increased more than 8 per cent and reached a two-week high after the vet drugmaker agreed to be taken private.

The FTSE 250 firm said it had agreed a £4.5bn ($5.6bn) bid from Swedish private equity firm EQT. The firm listed on the LSE in 2000 with a market value of £60m.

In the US, S&P 500, Dow and Nasdaq futures were all in the green when trading began in Europe.

Wall Street rose Thursday after the US Senate passed the debt ceiling bill and focus turned to Friday's jobs report.

The Dow Jones increased 0.47 per cent to close at 33,061 points. The S&P 500 added 0.99 per cent to 4,221 points and the NASDAQ gained 1.28 per cent to 13,100.