Europe close: Dax notches up fresh 1-year high

European stocks gained on Thursday, riding an upbeat Wall Street session on hopes that a deal to resolve the US debt ceiling dispute was close.

The pan-regional Stoxx 600 index was up 0.43% to 465.99, with all major bourses higher.

Germany's Dax added 1.33% to 16,163.36, alongside a 0.64% move to the upside for the French Cac-40 to 7,446.89, although Spain's Ibex 35 was only 0.02% higher at 9,213.10.

"European markets got off to a strongly positive start to the day in early trading, with the DAX pushing up to its best levels this year, as it looks to retest the record highs set at the back end of 2021;" said CMC Markets UK chief market analyst Michael Hewson.

"The afternoon session has seen a modest retreat from the highs of the day, with US markets initially acting as a drag, before pulling higher on comments from House Republican Kevin McCarthy that a debt ceiling deal could be on the floor of the house by next week."

In equity news, shares in UK telecoms giant BT Group slumped 5% as the company announced plans to cut 55,000 jobs by 2030.

Shares in Future tanked 16% after the media group lowered its full-year expectations on the back of 'challenging' market conditions.

Volkswagen gained 2% on the carmaker's plans to overhaul its core brand to increase efficiency and returns.

Deutsche Bank added 3% after it agreed to pay $75m to settle a lawsuit by women who say they were abused by the late financier Jeffrey Epstein, and accused the German bank of facilitating his sex trafficking.

British luxury fashion brand Burberry fell even as it reported stronger-than-expected fourth-quarter sales.

Aston Martin rallied after Chinese auto group Geely committed to invest £234m in the luxury car maker, to become its third-largest shareholder.

Several markets, including those in the Nordics and Switzerland, were closed for Ascension Day.