SINGAPORE, May 19 Reuters Global shares hit a onemonth high on Friday as markets reflected increased hopes of a U.S. debt ceiling deal that could avoid a potentially calamitous default.

Europe39;s STOXX 600 was up 0.7, while emini futures for the SP 500 rose 0.2, following a 0.9 gain for the benchmark Wall Street index overnight.

MSCI39;s broadest index of global shares was up 0.2, hitting its strongest level since midApril and on course for its biggest weekly gain since late March.

Against a basket of currencies, the dollar was steady on the day, having hit its highest since March 20 earlier in the session. The euro reached its lowest in almost two months, at 1.0771, before recovering to 1.079. Sterling , at 1.2405, was near its weakest since April 25.

The moves came after Democratic negotiators told President Joe Biden they were making steady progress on a deal to lift the U.S. debt ceiling and avoid a default by the world39;s largest economy, whose currency and Treasury debt markets underpin global trade and investment.

The U.S. government may default on some debt as early as June 1 unless Congress votes to lift the debt ceiling.

This prospect has sparked fears of a recession and raised questions over the global status of U.S. Treasury debt, a 23 trillion market that is seen as providing the lowestrisk source of liquidity for companies, investors and central banks.

It39;s a high risk but low probability event, Kevin Thozet, investment committee member at…