Stock markets to open higher from optimism on passing of US debt bill.

European stock markets are anticipated to begin higher on Friday after the United States' debt ceiling deal was passed by Congress, preventing a disastrous default.

A day after the House of Representatives accepted the bill, the United States Senate implemented legislation late Thursday suspending the government's $31.4 trillion debt cap for two years.

It now moves to the White House to be signed into law by President Joe Biden, just a few days before a June 5 window for a default that would have had catastrophic economic ramifications internationally, putting an end to a major cause of concern for financial markets over the previous month.

The news that eurozone inflation fell more than expected last month, to 6.1% in May from 7.0% in April, lifted sentiment in Europe.

The ECB is largely expected to raise interest rates by a further quarter percentage point on June 15th, adding to the 375 basis points raised in the previous year to battle price inflation.

Yet, recent inflation data have fuelled speculation about how far the region's central bank may go in enforcing monetary policy.

On Thursday, ECB President Christine Lagarde signalled that more rate rises are needed, while Executive Board member Fabio Panetta stated that the central bank doesn't have quite as far to go.

The key economic announcement of the day will be the nonfarm payrolls data from the United States, which is projected to indicate that the world's largest economy gained 180,000 jobs in May.

The employment report will be one of the final pieces of information released before the Fed's June meeting, and it might influence whether the central bank maintains its aggressive monetary policy or chooses to stop its 14-month rate hike campaign.

Oil prices jumped Friday after a measure to extend the United States debt ceiling was approved, removing the fear of major damage to global economic activity.

(Sources: investing.com, reuters.com)