Europe Asia News

The pan-European Stoxx 600 Index gained 1.5%, with major exchanges and almost all sectors trading in positive territory. The UK’s FTSE rose 1%, Germany’s DAX gained 1.5%, France’s CAC 40 increased 1.9%, and Italy’s FTSE MIB climbed 2.1%.

The rally came after U.S. senators took a crucial step late Sunday toward a potential bipartisan deal to end the historic government shutdown. The agreement being discussed in the Senate would reopen the government through January and reverse some recent large-scale federal layoffs.

According to a survey released Friday by the University of Michigan, concerns over the shutdown have pushed consumer confidence to its lowest level in more than three years, with only a few major economic reports released during the closure.

In Europe, the technology and financial sectors led early gains. The Stoxx 600 Technology Index rose 2.3%, while the Stoxx 600 Banks Index gained 2.5%.

Shares of Diageo jumped 7.2% after the company appointed Dave Lewis as its new CEO on Monday morning. The rise followed a downgrade in the company’s year-end forecasts last week, citing weakness in the U.S. and Chinese markets.

Danish pharmaceutical giant Novo Nordisk rose 2.4% after announcing an exclusive agreement with India’s Emcure Pharmaceuticals to market its weight-loss drug Wegovy under a new brand. In a separate development, Novo Nordisk lost a $10 billion bidding war to Pfizer for obesity biotech firm Metsera.

In the pharmaceutical sector, Sweden’s Camurus surged 12.9% after reporting positive results for its obesity treatment CAM2056, showing outcomes comparable to or better than Wegovy. Zealand Pharma also gained 3.8% on Monday.

U.S. stock futures climbed Sunday night. After a week dominated by concerns over high valuations of AI-related stocks, the potential deal provided a welcome boost for investors.

Asia-Pacific markets also advanced overnight, recovering from last week’s technology-driven losses. Asian investors also assessed China’s October inflation data, which came in above expectations.

Results from Hannover Re and Mediobanca are expected today. In other news, the COP30 climate summit begins on Monday.