European stock markets are anticipated to begin higher on Thursday, aided by progress on the US debt ceiling deal and indications of life in China's industrial sector.

European stock markets are anticipated to begin higher on Thursday, aided by progress on the US debt ceiling deal and indications of life in China's industrial sector.

Stats published earlier Today showed that Chinese manufacturing activity expanded faster than predicted in May, with the Caixin Manufacturing PMI reaching 50.9 in May, up from 50.3 in April and 49.5 the previous month.

This private poll gave optimism of a resurgence in this significant regional development engine, which also serves as a major export market for many of Europe's top corporations. In contrast to the mediocre official government figures released earlier this week.

Meanwhile, in Europe, German retail sales increased 0.8% month on month in April, improving on the 2.4% dip the previous month, but still representing a 4.3% annual decline.

Manufacturing PMI statistics for much of Europe are anticipated later in the morning and are likely to reflect a sector that is still afflicted by high pricing and interrupted supply chains.

However, the primary emphasis on Thursday will be the eurozone's May inflation figure.

Inflationary pressures are lessening in a number of individual nations, suggesting that the 7.0% annual rate for May, may be revised lower.

It is now on its way to the Senate, boosting hopes that a default in the US, which would have had devastating economic ramifications, might be avoided.

After a good private poll of Chinese factory activity provided the potential of an economic resurgence in the world's top crude importer, oil prices recovered early losses.

Prices had previously fallen after data from the API revealed an unexpectedly big build in U.S. oil stockpiles last week, jumping by about 5.2 million barrels, raising concerns about oversupply in the world's top consumer.

(Sources: investing.com, reuters.com)