Europe: Stocks rally as US set to avoid debt default

[LONDON] European stock markets gained more than one per cent at the open on Thursday following rallies across Asia, with the United States set to avoid defaulting on its debt.

London's benchmark FTSE 100 index jumped 1.2 per cent to 7,078.43 points.

In the eurozone, Frankfurt's DAX index won 1.3 per cent to 15,165.58 points and the Paris CAC 40 advanced 1.3 per cent to 6,576.47.

US senators neared agreement in the small hours of Thursday to stave off a catastrophic credit default after Democrats said they were close to accepting an offer from the Republicans to raise the debt limit for two months.

The deal would represent the first breakthrough in a partisan staring match that risked leaving the United States unable to service its debt after the estimated deadline of Oct 18, which would have shattered the US economy and led to a global recession.

AFP