European stocks hit a two-week high on Tuesday following the U.S. Senate’s passage of a short-term funding bill aimed at ending the longest government shutdown in U.S. history. The bill will now move to the House, where a vote could take place as early as Wednesday.
U.K. stocks outperformed the broader market as the British pound slumbled on growing hopes for a rate cut, spurred by weak labor market data. The unemployment rate rose to 5 percent, while wage growth slowed during the three months to September. These developments have strengthened the case for the Bank of England to reduce interest rates next month.
The pan-European Stoxx 600 index jumped 0.6 percent to 576.35, following a 1.4 percent gain on Monday. Germany’s DAX edged up 0.2 percent, France’s CAC 40 added 0.5 percent, and the U.K.’s FTSE 100 rallied 1 percent.
Shares of Deutsche Wohnen rose 1.4 percent after the German real estate firm reported a profit in the first nine months of fiscal 2025, a turnaround from a loss in the prior year. Meanwhile, reinsurer Munich Re dropped nearly 2 percent after confirming its annual guidance of €6 billion for the 2025 financial year.
HelloFresh shares shed 1 percent as the company firmly rejected the arguments and alleged findings regarding its current performance, governance, and business outlook outlined in the Grizzly Research report.
In positive movements, U.K. scientific tools maker Oxford Instruments surged 9 percent following the return of order momentum in the second quarter. Vodafone jumped 6 percent after announcing the repurchase of 6,514,459 shares from Goldman Sachs as part of its efforts to enhance shareholder value.
*The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.*
https://www.nasdaq.com/articles/european-shares-climb-us-senate-approves-deal-end-government-shutdown
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