European Stock Futures climb as U.S. Debt Deals and Easing Energy Prices aid

Investors anticipate a stronger opening for the stock markets on Thursday owing to the week’s volatile trading with falling energy costs and signs of compromise in Washington boosting sentiment as said events averted a U.S. default.

The DAX futures contract in Germany inched higher in trade at 0.6% at 2 AM ET. Meanwhile, the CAC 40 Futures in France went up 1.3% whilst the FTSE 100 futures contract in the U.K. saw a climb of 1.2%

It is supposed that the European markets are going to reap the benefits from Thursday’s sudden reversal on Wall Street late Wednesday. The day saw the blue-chip Dow Jones Industrial Average recover from its loss of 400 points to earning even 100 points higher owing to the easing of the debt ceiling deal.

A logical root to this is Senate Minority Leader Mitch McConnell’s offering of a short-term suspension of the U.S. debt ceiling so as to avoid a national default, something expected by Treasury Secretary Janet Yellen from a recession should a permanent solution not be found by the end of the year.

A report on Private payrolls came in strong earlier today signaling investors and market participants that the economy’s momentum is not losing steam, thus allowing the Federal Reserve to reduce its bond purchases in November.

Falling back to 1.54% is the yield on the benchmark 10-year Treasury notes. This is a decline from Wednesday’s figures of a three-month high of 1.57%.

The move lower in energy prices helped the tone in Europe on Thursday with crude falling off multi-year highs with the sudden climb in U.S. crude stocks that fostered worries over demand in the world’s largest consumer.

Gas prices also plummeted a day after Russian President Vladimir Putin went on record to say that the country was geared to supply more natural gas in anticipation of a developing energy crisis.