European markets got off to a good start on Wednesday with gains across all the major indices. The FTSE 100 rose 0.4%, driven by housebuilders, packaging companies and telecoms providers.
Wall Street last night saw a particularly strong showing, with the S&P 500 up 1.2% and the Nasdaq rising 1.3%.
Russ Mould, investment director at AJ Bell, said: “Despite this positive sentiment, there remains a large elephant in the room. Joe Biden is dangerously close to the 1 June deadline to reach an agreement on raising the US debt limit, otherwise the US government will default on its bills.
“That could cause all kinds of problems with federal workers and to the US economy and likely cause a global stock market correction.”
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