LONDON — European stocks rallied at the start of the new trading week as a deal on a funding package that could end the U.S. government shutdown appears to be getting closer.
The pan-European Stoxx 600 was up 0.8% shortly after the opening bell, with almost all major bourses and sectors in positive territory.
The U.K.’s FTSE index was 0.7% higher at 8:03 a.m. in London (3:03 a.m. ET), Germany’s DAX up 1.5%, France’s CAC 40 up 1.1% and Italy’s FTSE MIB up 1.1%.
The advance comes after Senate lawmakers late Sunday evening took a critical step toward a potential deal to end the historic government shutdown.
A bipartisan deal being debated in the Senate would reopen the government into January and reverse some of the recent mass federal layoffs. People familiar with the situation told CNBC that enough Democratic senators had agreed to vote for the deal to clear a 60-vote minimum threshold.
Concerns over the shutdown have driven consumer sentiment to its lowest level in more than three years, according to a University of Michigan survey released on Friday, and only a few key economic reports have been released during the shutdown.
U.S. stock futures rose Sunday night with a potential deal a welcome boost for investors after last week, when concerns over the lofty valuations of artificial intelligence-related stocks dominated market sentiment.
Asia Pacific markets also traded higher overnight, shrugging off tech-fueled losses which plagued markets last week. Investors in Asia were also assessing October inflation data out of China at the weekend, which came in above expectations.
Earnings are due from Hannover Re and MedioBanca. In other news, the COP30 climate summit kicks off on Monday.
— CNBC’s Liz Napolitano contribute to this market report.