Market Update: European Stocks Rise on Lagarde Speech and Positive Sentiment

Global equity markets rose, led by solid gains in US equities, as markets cheered the passage of a debt ceiling bill that averted a catastrophic US default. In addition, US data have been better than expected in recent weeks, according to the Economic Surprise Index. The market is now pricing in a 74% chance of a pause at the June 13-14 FOMC meeting, compared to 35% a week ago, after several Fed officials including the vice chair-designate pointed toward a ‘skip’ in June. In the coming week, US ISM Services PMI for May, along with China Caixin Services PMI for May on Monday. RBA interest rate decision and Euro area retail sales are due on Tuesday.