LONDON — European stocks maintained their positive momentum on Tuesday as an end to the U.S. government shutdown is in sight.
The pan-European Stoxx 600 index ended the session with a provisional gain of 1.3%, with all major bourses and sectors in positive territory.
The U.K.'s FTSE index hit a new record high on Monday, up 1.2% for the session, while Germany's DAX gained 0.6%.
Shares of Swiss companies traded higher as the country appeared to be close to clinching a deal with the U.S. to lower tariffs. Switzerland's luxury sector saw initial gains, with Richemont up 2%, while Swatch Group advanced 6% and Givaudan rose 1.9%. Overall, Switzerland's SMI was up almost 2% by the closing bell.
In earnings news, Vodafone gained 8.3% after reporting total revenues of 19.6 billion euros ($22.7 billion) for the first half of the fiscal year 2026, reflecting a 7.3% increase. The London-listed telecoms group said it was increasing its dividend, and would reach the upper end of fiscal year 2026 profit guidance, boosted in part by growth in Germany, its largest market.
Meanwhile, the pound clawed back earlier losses against the dollar that came after a surprise slowdown in U.K. wage growth to 4.6% in the third quarter. Sterling was last seen down 0.17% against the greenback at $1.315. Yields on U.K. government bonds, known as gilts, also fell across all maturities, with the 10-year benchmark falling almost 8 basis points to 4.386%.
On Monday night, the U.S. Senate passed a bill to fund the federal government through January and end the longest shutdown in U.S. history.
The bill, which passed 60-40 with support from a handful of Democratic senators and nearly all Republicans, will be sent to the House of Representatives. If it passes the House, the bill will head to President Donald Trump to be signed into law.
— CNBC's Dan Mangan and Kevin Breuninger contributed to this market report.