US Shutdown Progress Fuels European Shares to Record Highs
European shares have reached new record highs, driven by optimism surrounding a potential resolution to the ongoing US government shutdown. The region-wide STOXX 600 index increased by 0.5%, hitting an all-time high of 583.4 points. Key European markets experienced broad gains, particularly within healthcare and luxury sectors.
US Government Shutdown Impact
Investor confidence surged after the US Senate passed a temporary funding bill aimed at ending a historic 43-day government shutdown. Markets are hopeful that this measure will receive full approval soon. As a result, the euro traded around $1.157, showing slight pressure against the US dollar.
Sector Performances
- Healthcare stocks were bolstered by positive reports on Novo Nordisk.
- Luxury brands, notably Louis Vuitton, benefited from speculation of expansion into China.
Market Reactions in the UK
In the UK, yields on government bonds rose as investors expressed concerns over potential political challenges for Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves following the recent Budget. Meanwhile, London’s FTSE 100 index edged closer to the 10,000 point mark, registering fresh record levels.
Corporate Highlights
- SSE’s share price surged by over 12% after announcing plans to nearly double investments to £33 billion by 2027.
- BAE Systems reported strong demand, with more than £27 billion in orders secured this year and a growth forecast of 8-10% in sales.
- SoftBank’s sale of its entire stake in Nvidia caused a 10% drop in Nvidia’s share prices in Asian markets.
- Foxconn reported a 17% increase in third-quarter profits, driven by growth in its AI server business.
Looking Ahead
As markets adjust to these developments, investors are closely monitoring upcoming US economic data, particularly the third-quarter GDP report. The resolution of the US government shutdown could further influence market sentiment and performance.
