European stock markets were mixed Monday after U.S. President Joe Biden and House Speaker Kevin McCarthy reached a deal to raise the nation's debt ceiling.
Germany's DAX and France's CAC 40 shed early gains to close down 0.2%, while the Stoxx 600 closed 0.1% lower.
Sectors ended the reduced trading day mostly close to the flatline, with oil and gas stocks among those closing marginally higher, up 0.2%, as tech fell 0.7%.
European markets
Swedish property group SBB climbed 4.5% after announcing it was exploring strategic options including a sale of the company or of specific assets and segments. Shares of the company have sunk 80% over the last year as it struggles with the higher interest rate environment.
U.K. markets are closed on Monday for a bank holiday. U.S. markets are closed for Memorial Day.
European stocks are coming off the back of a choppy week in which the Stoxx 600 index fell to an eight-week low before clawing back some losses Friday as tech stocks rallied on Nvidia's blockbuster results.
U.S. political leaders must now gather enough bipartisan support to pass the debt ceiling bill in Congress before the June 5 deadline to avoid a federal default.
With negotiators hurriedly drafting the wording, the U.S. House of Representatives could vote as soon as Wednesday, followed by the Senate later in the week, AP reported.
While the debt ceiling deal is likely to calm market jitters, and with a strong earnings season out of the way, investors now turn their attention to the economic outlook and path of interest rates.
While the Federal Reserve, European Central Bank and Bank of England had been widely expected to pause rate hikes and look at when to pivot, recent data has complicated the picture for all three.
Asia-Pacific markets were mixed even as Japan's Nikkei 225 climbed to trade at the highest levels since July 1990.
Elsewhere, the Turkish lira slumped to a record low after incumbent President Recep Tayyip Erdogan secured reelection.