Europe open: Shares up on hopes of US debt ceiling deal

European stocks opened higher 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 0.48% by 0730 GMT, with all major bourses higher.

US stocks rallied overnight after President Joe Biden and US Republican congressional leader Kevin McCarthy reiterated their determination to avoid a default.

“With yesterday’s strong US finish in mind, we look set to carry that momentum into today’s European open, although with bank holidays in France and Germany we can probably expect to see another quiet session,” said CMC Markets analyst Michael Hewson.

In equity news, shares in UK telecoms giant BT Group slumped almost 10% as the company announced plans to cut 55,000 jobs by 2030.

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

Deutsche Bank slipped 1.3% 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.

Reporting by Frank Prenesti for Sharecast.com