European stocks surge, German DAX is nearing a record high

European stocks rose today, Friday, and pushed the German DAX index towards record highs, supported by indications of progress in the US debt ceiling negotiations.

According to “Reuters”, the European Stoxx 600 index advanced 0.4 percent by 0708 GMT, and is heading to end the week, recording small gains. Mining and financial services stocks made the biggest gains among European sectors

The German DAX index rose 0.3 percent after it ended the session on Thursday at the highest level in 2023. The index is now less than 100 points away from its all-time high of 16,290.19, which it recorded in November 2021.

The Standard & Poor’s and Nasdaq indexes on Wall Street achieved their strongest closing level in more than eight months on Thursday, supported by growing optimism about the possibility of reaching an agreement on the US debt ceiling within days.

Data showed German producer prices rose slightly more than expected to 4.1 percent in April on an annual basis, which will likely make the European Central Bank stick to the path of further interest rate hikes.