Source: Sharecast
The pan-regional Stoxx 600 index was up 0.53% in early deals to hit a fresh intra-day high of 583.4. All major bourses were higher.
A vote in the US Senate to approve a compromise bill to resume funding until the end of January was passed on Monday. It still needs lower house and presidential approval.
“European markets have continued their winning streak this morning, opening up thanks to a smattering of positive macro and company news. French stocks received a boost from rumours about a Chinese expansion for luxury label Louis Vuitton, and healthcare stocks across Europe boosted gains too thanks to a positive note from JPMorgan on Novo Nordisk," said Hargreaves Lansdown chief investment strategist Emma Wall.
"These are areas of the market which have been overlooked year to date – with much of European gains coming from defence and banking thanks to government spending and a supportive rate environment, leaving sectors such as consumer staples, healthcare, and utilities behind."
"Macro news has also provided a tailwind for markets – with the US shutdown nearing resolution after a record 43 day run. Somewhat surprisingly given the recent successes in the odd-year elections, Democrats appear to have conceded some of their demands for healthcare funding and the prospect of an approved US Budget has lifted markets globally. "
"Add to that, poor jobs data in the UK yesterday meaning that the markets are now pricing in a near cert of a December rate cut – sending both UK equities and bonds up."
In economic news, German inflation eased slightly last month to 2.3%, the federal statistics office said on Wednesday, confirming preliminary data.
On a harmonised basis compared with other European Union countries, inflation stood at 2.4% year-on-year in September.
On the equities front, shares in UK energy utility SSE surged after results.
Reporting by Frank Prenesti for Sharecast.com
