European equities advanced strongly on Monday as investors reacted positively to signs that the United States is close to ending its record-breaking government shutdown.

Optimism spread across global markets after the U.S. Senate voted 60-40 to approve a bipartisan bill aimed at reopening federal agencies and ending the 40-day shutdown, the longest in American history. The legislation would provide funding through January and guarantee back pay for furloughed federal employees.

By midday trading, major European indices were firmly in positive territory. The German DAX rose 1.8%, the French CAC 40 gained 1.5%, and London’s FTSE 100 added 0.9%, mirroring the upbeat global sentiment.

In company news, Stabilus (TG:STM) jumped higher despite reporting a sharp drop in preliminary full-year net profit, which it attributed to one-off charges, market uncertainty, and U.S. trade policies.

Meanwhile, Salzgitter (TG: SZG) fell after cutting its full-year outlook for the second time in 2025, reflecting continued pressure on the steel sector.

Reinsurer Hannover Re (TG:HNR1) moved strongly higher after raising its full-year earnings guidance, buoyed by robust performance in its reinsurance business.

Among London-listed stocks, Diageo (LSE:DGE) climbed after the drinks giant announced that Sir Dave Lewis, former CEO of Tesco, will take over as chief executive starting January 2026, a move seen by investors as strengthening the company’s leadership and strategic direction.

Overall, European markets opened the week with strong momentum, supported by improving global risk appetite and hopes that the end of the U.S. government shutdown could remove one of the lingering uncertainties for investors.

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