- US nears debt ceiling deal
- UK inflation remains unchanged
- German investor confidence rises
FTSE 100: 0.49%
CAC 40: 0.64%
FTSE MIB: 0.35%
IBEX 35: 0.76%
Stoxx 600: 0.70%
European stocks rose as the US government came closer to a deal on the debt ceiling.
House Republicans today said the government was negotiating a proposal to raise the $16.7trn borrowing limit through until February 7th 2014.
Congress held a closed-door meeting today as the government has just two days to reach an agreement before hitting the debt ceiling.
The House could hold votes on the proposal as soon as today, according to lawmakers leaving the meeting.
"Investors have remained relatively confident throughout this process that a deal would eventually being done, although that hasn't stopped them taking precautions as the deadline approaches," said Craig Erlam, Market Analyst at Alpari.
"The most notable of these has been the selling of very short-term US debt, which has risen significantly over the last month."
The government has been in shutdown since October 1st after failing to reach a deal on the federal budget.
UK inflation holds steady
The UK inflation rate remained unchanged in September as a fall in both petrol and diesel prices was offset by rising air fares, the Office for National Statistics revealed.
The consumer price index (CPI) came in at 2.7% last month, compared to forecasts for a drop to 2.6%.
The Bank of England is targeting an inflation rate of 2% but is putting off lifting interest rates to control inflation until the unemployment rate falls.
"We expect CPI inflation to drift slowly downwards to the 2% target, making it increasingly unlikely that either of the price stability knock-outs under the Monetary Policy Committee's forward guidance policy will be triggered," Barclays said.
In Germany, economic sentiment rose unexpectedly in October to the highest level since April 2010, according to a ZEW survey.
The investor confidence index climbed to 52.8 points this month from 49.6 last month, beating forecasts for the reading to remain unchanged.
The report comes as the Angela Merkel holds talks to form a coalition after failing to win enough votes at last month's federal election.
Rio Tinto, Burberry
Rio Tinto gained after reporting a 1% year-on-year increase in third quarter iron ore output to 53.4m metric tonnes.
Burberry declined after announcing Chief Executive Officer Angela Ahrendts will leave to join Apple next year.
Ashtead rallied after JP Morgan raised its rating on the shares
to 'overweight' from 'neutral', citing a prediction for an increase in earnings in fiscal year 2016.
Schindler Holding slumped after the Swiss elevator maker said operating profit fell 5.7% to 682m francs in the nine months through September from a year earlier and cut its forecast for the year.
Man Group advanced after UBS added the hedge-fund manager to its most-preferred list on the back of strong performance of its GLG Partners unit.
Advertising giant WPP edged higher after agreeing to buy digital-ad agency IM2.0 through its VML operating company.
Other asset classes decline
The euro fell 0.43% to $1.3503.
Brent crude futures slipped $0.653 to $110.320 per barrel on the ICE.