European equities advanced on Tuesday, extending the week’s upbeat momentum as investors grew confident that the longest U.S. government shutdown on record was nearing its end.

By 08:10 GMT, Germany’s DAX rose 0.3%, France’s CAC 40 gained 0.6%, and the UK’s FTSE 100 climbed 1%. The positive session followed Monday’s broad rally, when all three indices posted gains of more than 1% on renewed optimism about a U.S. funding deal.

U.S. Senate Approves Funding Bill

Late Monday, the U.S. Senate passed a bipartisan bill to fund the federal government through January, ending the historic shutdown. The bill passed 60–40 with support from nearly all Republicans and several Democrats. It will now move to the House of Representatives, where Speaker Mike Johnson indicated he aims to pass it by Wednesday before sending it to President Donald Trump for approval.

The anticipated reopening of the U.S. government has boosted investor sentiment globally. The shutdown had caused nationwide disruptions, particularly in sectors like air travel, and had begun to weigh on confidence in the U.S. economy — the key engine of global growth.

U.K. Labour Data Supports Rate-Cut Expectations

In the UK, new labour market data released Tuesday showed that unemployment rose while wage growth softened, adding weight to expectations of a potential Bank of England interest rate cut next month.

According to the Office for National Statistics (ONS), the unemployment rate increased to 5.0% in the three months to September, up from 4.8% in the previous period. Wage growth excluding bonuses eased slightly to 4.6% from 4.7%.

The central bank, which held rates steady at 4% last week, has signaled growing openness to policy easing if domestic inflation pressures continue to subside.

Corporate Highlights: Vodafone, Munich Re, SoftBank

In corporate news, Vodafone Group (LSE:VOD) raised its full-year outlook after reporting higher first-half revenue and earnings, driven by strong performance in the UK, Türkiye, and Africa, alongside the completion of its merger with Three UK.

German reinsurer Munich Re (TG:A289EQ) reported a third-quarter profit of €2 billion, boosted by lower major-loss costs in its property-casualty reinsurance segment. The result brought its nine-month profit to €5.2 billion, underscoring strong profitability in a stable reinsurance market.

Meanwhile, SoftBank (USOTC:SFTBF) delivered a stronger-than-expected fiscal second-quarter profit, benefiting from sizable gains tied to its artificial intelligence investments. The results highlight the Japanese tech giant’s ongoing recovery following prior years of volatility in its Vision Fund portfolio.

Oil Prices Edge Lower

Crude prices slipped on Tuesday, reversing modest gains from the prior session amid renewed concerns about a potential supply glut.

Brent crude futures fell 0.4% to $63.83 a barrel, while U.S. West Texas Intermediate (WTI) declined 0.5% to $59.86. Both benchmarks had advanced slightly on Monday as optimism grew over the U.S. shutdown resolution, though traders remain cautious about rising output.

Earlier this month, OPEC+ agreed to increase December production targets by 137,000 barrels per day, maintaining the pace set for October and November, while planning a pause in output hikes during the first quarter of next year.

Overall, optimism about the U.S. funding deal and stabilizing European data helped lift market sentiment, though inflation pressures and oil market uncertainty continue to temper risk appetite.

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