The sun rises over frost-covered houses in December 2022 in London, England. Cold weather has returned in January, causing the U.K. power supplier to offer financial incentives for households to cut use at peak times.
Leon Neal | Getty Images News | Getty Images
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 1% in morning trade, with major bourses and almost all sectors in positive territory.
The U.K.’s FTSE index was 0.5% higher at 8:25 a.m. in London (3:25 a.m. ET), Germany’s DAX rose 1.4%, France’s CAC 40 was up 1% and Italy’s FTSE MIB added 1%.
The advance came 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.
Back in Europe, the technology sector was among those leading early gains, with the Stoxx 600 Technology Index up 2%.
Diageo gained 7.2% in early trade after the spirits maker named Dave Lewis as its new CEO on Monday morning. The surge came after the company last week cut its full-year guidance, highlighting weakness in U.S. and Chinese markets.
Shares of Novo Nordisk rose 2.7% after the Danish pharmaceuticals giant announced it was partnering with Indian drugmaker Emcure Pharmaceuticals to sell its weight loss treatment Wegovy under a new brand in an exclusive agreement. Separately, Novo Nordisk lost out to Pfizer in the $10 billion bidding war for obesity biotech specialist Metsera over the weekend.
Elsewhere in the pharma space, Sweden’s Camurus soared 10.9% in early trade after the biopharmaceutical stock reported positive results for its obesity treatment, CAM2056, which showed results comparable or exceeding those of Wegovy. Zealand Pharma also rose 3.1% on Monday morning.
Global stocks
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.
