European stocks are rising and the German DAX is nearing a record high

European stocks rose on Friday and pushed the German DAX index towards record highs, supported by indications of progress in the US debt ceiling negotiations.

The pan-European Stoxx 600 advanced 0.4% by 0708 GMT, and is set to end the week with a slight gain. Mining and financial services stocks were the biggest gainers among European sectors.

The German DAX rose 0.3% after ending the session on Thursday at a 2023 high. The index is now less than 100 points away from its all-time high of 16,290.19, which it hit in November 2021.

The Standard & Poor’s and Nasdaq indexes on Wall Street achieved their strongest closing level in more than eight months on Thursday, supported by growing optimism about the possibility of reaching an agreement on the US debt ceiling within days.

Data showed German producer prices rose slightly more than expected to 4.1% in April on an annual basis, which will likely make the European Central Bank stick to the path of further interest rate hikes.