Financial services, mining stocks lead gains
US debt ceiling deal hopes boost global mood
European tech shares hit over oneyear high

May 19 Reuters European stocks rose on Friday, pushing the German DAX towards record highs as signs of progress in U.S. debt ceiling negotiations encouraged investors to pile into riskier assets.

The panEuropean STOXX 600 index rose 0.6, set to end the week with modest gains.

Sectors sensitive to the health of the economy such as financial services, miners and construction and materials were the top gainers in Europe.

The German DAX rose 0.6 after closing at its strongest level of 2023 on Thursday. The index is trading less than 40 points below its alltime high of 16,290.19, hit in November 2021.

Wall Street39;s SP 500 and Nasdaq notched their strongest close in over eight months on Thursday, driven by optimism that a U.S. debt ceiling deal could be reached within days.

If there is a deal, the immediate equity market reaction would be a little bit of a rally. I don39;t think equities would shoot up massively because we39;re also probably going to get an upward movement in bond yields, said Paul Danis, head of asset allocation at RBC Brewin Dolphin.

On a 1218 month view, I don39;t see much upside in equities. There39;s not that much room for economies to grow and inflation pressures are still strong.

Data showed German producer prices rose slightly more than expected to 4.1 in April, on a yearonyear basis, likely keeping the…