LONDON Oct 11 European shares rose on Friday,
lifted by prospects of a deal to end the U.S. debt stalemate.
The pan-European FTSEurofirst 300 index gained 0.3
percent to 1,249.23 points in early trade, building on gains
from the previous session when the index marked its biggest
daily gain in a month with a 1.7 percent rise.
The euro zone's blue-chip Euro STOXX 50 index
advanced 0.2 percent to 2,974.49 points.
French hotel group Accor topped the FTSEurofirst
300 leaderboard with a 2 percent rise after investment bank
Citigroup's upgraded the stock to a "buy".
Global equities have lost ground this month since the U.S.
government partially shut down due to the budget stalemate,
leading to concerns about the $16.7 trillion U.S debt ceiling
which Treasury Secretary Jack Lew said the government will hit
no later than Oct. 17.
But President Barack Obama and Republican leaders appeared
ready to end the deadlock after meeting at the White House on
Darren Courtney-Cook, head of trading at Central Markets
Investment Management, said even a short-term extension to the
U.S. debt limit would be enough to soothe investors' nerves.
"Even if they just kick the can down the road again, the
fact that there won't be a default is why the markets would take
it so positively. There may be some volatility going up to the
wire, but most people expect a year-end rally," he said.