European stock indexes up, U.S. futures up
Dollar hits 6month high versus yen
U.S., UK markets closed for public holidays
Markets price in Fed rate increase next month

LONDON, May 29 Reuters European stock indexes slipped slightly on Monday, lacking momentum in thin trade while optimism about the U.S. having reached a debt ceiling deal over the weekend kept Wall Street futures positive.

U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal on Saturday to raise the federal government39;s 31.4 trillion debt ceiling, aiming to stop the U.S. from defaulting on its debt. The deal is expected to provide only shortterm relief for markets, as worries linger about inflation and further rate increases.

Asian stocks mostly rose, with Tokyo39;s Nikkei surging to a new 33year high. But Chinese stocks fell after data showing profits slumping at China39;s industrial firms was the latest sign of an economic slowdown there.

At 0949 GMT, the MSCI world equity index was up 0.1.

European stock indexes initially opened higher, then faltered. Europe39;s STOXX 600 was flat on the day. But Wall Street futures rose, with SP 500 eminis up 0.3 and Nasdaq eminis up 0.4 .

U.S. and UK markets are closed on Monday for public holidays.

U.S. sixmonth credit default swaps narrowed, meaning that the cost of insuring against exposure to a U.S. debt default over the short term fell. But the fiveyear swap rose, suggesting some caution in markets about the…