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European stocks advance influenced by US debt deal optimism

europeanstockEuropean stocks moved up for a fourth consecutive day, amid optimism US leaders will agree on a deal to put to an end the partial government shutdown and avoid a breach of the debt limit.

The Stoxx Europe 600 Index rose 0.6% to 314.11 at 9:17 a.m. in London. The gauge has advanced 1.2% in October even as U.S. lawmakers struggled to agree on a budget, forcing the first partial government shutdown in 17 years. The Footsy index (FTSE 100) advanced almost 0.7%, German DAX added 0.6%.

“We had very positive comments from the Senate leaders, and if you take those comments at face value, a deal looks fairly imminent,” Otto Waser, chief investment officer at R&A Research & Asset Management AG in Zurich, said by telephone for Bloomberg. “The market is back to the levels it was at before the entire crisis talks started.”

Former treasury Secretary Lawrence Summers said in Seoul today that the U.S. will not default.

In corporate news Burberry retreated 3.4% to 1,531 pence, its biggest drop since July 3. Christopher Bailey will become CEO of the largest British luxury-goods producer, as Ahrendts departs to head Apple’s retail and online business.

Rio Tinto rose 3% to 3,175 pence. The world’s second-largest mining company said it produced 53.4 million metric tons of iron ore in the three months to Sept. 30, compared with 52.6 million tons a year earlier.

Casino Guichard-Perrachon SA surged 2.9% to 82.02 euros. The owner of the Monoprix and Geant supermarket chains reported third-quarter revenue of 11.8 billion euros ($16 billion), exceeding analysts’ projection of 11.7 billion euros.

Third-quarter earnings season resumes today with expected reports before the market opens from Citigroup Inc., Coca-Cola Co., Johnson & Johnson and Omnicom Group Inc. Yahoo Inc. and Intel Corp. are scheduled to report after the market closes.

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