Europe: Shares gain on hope of end to US government shutdown; Diageo shines
EUROPEAN shares rose on Monday, echoing a buoyant mood across global markets as investors cheered initial signs that the historic US government shutdown could soon come to an end, while Diageo gained after the spirits maker named a new CEO.
The pan-European Stoxx 600 closed up 1.42 per cent at 572.82 points, logging its best day in nearly three weeks. Major bourses in Germany and France also rose 1.7 per cent and 1.3 per cent, respectively.
In the previous session, the Stoxx index logged its biggest weekly loss since late August as concerns over a tech bubble coupled with the lack of official US data due to the 40-day federal government shutdown pushed investors to the sidelines.
Market jitters however showed signs of abating after the US Senate advanced a bill that would reopen the government and keep it running until the end of January. The bill needs a green light from the House of Representatives and US President Donald Trump.
Talking about the gains in EU markets, Fiona Cincotta, senior market analyst at City Index said: “The potential end to the US government shutdown is brightening the mood and removing a level of uncertainty.”
“Investors are more ready to take on risk, and we’ve seen the risk-on mood across the global markets.”
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Tech stocks bounced back from recent losses, gaining 1.6 per cent, while Siemens Energy rose 4.6 per cent after brokerage Jefferies upgraded the data centre equipment maker to ‘buy’ from ‘hold’.
Banks gained 2.9 per cent. Commerzbank rose 6.6 per cent after Deutsche Bank upgraded the stock to “buy” from “hold”.
Diageo advanced 5.2 per cent after the spirits maker appointed former Tesco boss Dave Lewis as its CEO, turning to an outsider to steer it through a challenging period for the drinks industry.
Meanwhile, euro zone investor morale worsened further than expected in November.
Later in the week the focus will be on euro zone economic growth data for the third quarter. A BusinessEurope survey showed regional businesses are likely to see a far greater impact in 2026 from trade tensions than in 2025.
On the earnings front, Salzgitter gained 5.4 per cent after the German steelmaker’s nine-month results exceeded analysts’ expectations.
Camurus shot up 14.6 per cent after the drugmaker said its weight-loss drug showed positive results.
Novo Nordisk rose 1.2 per cent after the Danish drugmaker dropped its bid for US weight-loss drug company Metsera, ending a bidding war with rival Pfizer.
Northern Data jumped 31.5 per cent after Rumble, which hosts President Donald Trump’s social media platform Truth Social, said it is buying the AI cloud company in a roughly US$767 million all-stock deal. REUTERS
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