UK shares struggle for direction as US debt ceiling talks stall

The FTSE 100 ended the session higher on Friday after the Speaker of the US House of Representatives Kevin McCarthy said a bill to raise the US debt ceiling could be voted as early as next week. Adding to the good mood, a survey by research group GfK showed domestic consumer confidence reached its highest level in 15 months in May. The FTSE 100 added 0.6% for the day and 0.4% for the week. Retailers underperformed after JD Sports posted disappointing annual results on Thursday.

This morning, the blue-chip index was struggling for direction after Sunday’s talks on raising the U.S. debt ceiling failed to reach a deal. Biden and McCarthy will meet again today, as the June 1 deadline approaches.

Among stocks, NatWest rose 0.9% after the UK government sold about 1.26 billion in shares of the bank.

Meanwhile, British vet pharmaceuticals maker Dechra Pharmaceuticals dropped 7.1% after it lowered its earnings guidance for the year. The group is currently in talks with private equity group EQT for a potential 4.6 billion pounds deal.

Things to read today:

Doom-mongers are wrong to underestimate the European economy (Financial Times)

 SVB’s Collapse Resurrects the Idea of Banking Without Bank Runs (Businessweek)

Biden, McCarthy Attempt to Revive Budget Takes as Debt Default Looms (WSJ)