STOXX 600 headed for weekly declines
Rio Tinto boosted by Morgan Stanley upgrade
Technology stocks extend rally

May 26 Reuters European shares inched up on Friday on gains in mining and technology stocks although the main benchmarks were set for steep weekly losses on growing concerns over a slowing global economy and the debt ceiling talks in the United States.

The panEuropean STOXX 600 index rose 0.2 after closing at an eightweek low on Thursday.

U.S. President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal that would raise the government39;s 31.4 trillion debt ceiling for two years while capping spending on most items.

Concerns about whether the two sides could reach a deal and avert a debt default have weighed on markets in the recent weeks.

It is the key focus point because it39;s important for growth dynamics in the U.S., said Peter Garnry, head of equity strategy at Saxo Bank.

We expect the two parties will reach a debt deal that will have a meaningful impact on economic growth. If they go too aggressive on reducing the deficit going forward, then obviously that will create some headwinds for the U.S. economy.

Miners jumped 2.5, leading sectoral gains in Europe, as metal prices rebounded and Rio Tinto climbed 3.5 after Morgan Stanley upgraded the stock to overweight from equal weight.

Technology stocks extended their rally for a second day after U.S. chipmaker Nvidia39;s strong forecast, with ASM International…