- European stock markets are expected to open higher Thursday, helped by progress in the U.S. debt ceiling bill as well as signs of life in the Chinese manufacturing sector.

At 02:00 ET (06:00 GMT), the contract in Germany traded 0.6% higher, in France climbed 0.5% and the contract in the U.K. rose 0.3%.

Data released earlier Thursday indicated Chinese manufacturing activity grew more than expected in May, with the coming in at 50.9 in May, more than the forecast 50.3 as well as the prior month’s 49.5.

This private survey contrasted with the weak official government data released earlier this week, and offered hope of a recovery in this major regional growth engine, which also acts as a major export market for many of Europe’s largest companies.

Back in Europe, grew 0.8% on the month in April, an improvement on the 2.4% drop the prior month, but this still represented an annual fall of 4.3%.

data for much of Europe are due later in the session, and are expected to show a sector still troubled by soaring prices and disrupted supply lines.

However, the main focus Thursday will be the May number for the eurozone. 

Figures from a number of individual countries have shown that inflation pressures are easing, and thus there is potential downside to the expected 7.0% annual figure for May.

Global sentiment has also received a boost after the U.S. House of Representatives voted in favor of a bill to suspend the debt ceiling late Wednesday. 

It now heads towards the Senate, raising optimism that a default in the world’s largest economy, which would have had severe economic consequences, can be avoided. 

In corporate news, French spirits group (EPA:) reported a higher-than-expected rise in operating profit for its 2022/23 fiscal year, with the French spirits group sticking to its cautious prospects for this year on the back of expected weaker U.S. demand.

Oil prices reversed early losses after the positive private survey of Chinese manufacturing activity offered hope of an economic recovery in the world’s largest crude importer.

The market had earlier dipped after data from the showed an unexpected, large build in U.S. crude stocks last week, rising by around 5.2 million barrels, triggering fears of oversupply in the largest consumer in the world.

By 02:00 ET, futures traded 0.4% higher at $68.36 a barrel, while the contract climbed 0.5% to $72.98. 

Additionally, fell 0.1% to $1,979.55/oz, while traded 0.1% lower at 1.0678.