European Shares Seen Higher As US Senate Passes Bill To End Shutdown

(RTTNews) - European stocks are seen opening on a positive note Tuesday after the U.S. Senate passed the funding bill to end the longest-running government shutdown in history.

The agreement extends government funding through January 2026. It would restore funding for various federal agencies and programs and help reinstate workers who were laid off during the shutdown.

It is said that a vote on subsidies in healthcare, as demanded by Republicans, would take place by December.

The bill will still need approval from the House and the signature of the president before the shutdown ends.

Investors are optimistic that the reopening would lead to the resumption of the release of key U.S. economic data on jobs and inflation, heading into next month's Federal Reserve interest-rate decision.

Closer home, U.K. unemployment data and Germany's ZEW indicator of economic sentiment may garner some attention later in the day.

U.S. equity futures were little changed while Asian markets gave up early gains to turn mixed. The dollar was steady while oil prices edged lower after settling modestly higher on Monday.

Gold extended gains to a near three-week high on growing expectations of another Fed rate cut in December. In an interview with CNBC, U.S. Federal Reserve Governor Stephen Miran has called for continuing with rate cuts, citing better-than-expected inflation data and signs of continued weakness in the labor market.

U.S. stocks rallied overnight amid eased uncertainty over the economic outlook and rate-cut bets. The tech-heavy Nasdaq Composite soared 2.3 percent, the S&P 500 climbed 1.5 percent and the Dow rose 0.8 percent.

European stocks closed on a strong note on Monday after U.S. lawmakers moved towards ending the historic U.S. government shutdown.

The pan-European Stoxx 600 gained 1.4 percent. The German DAX jumped 1.7 percent, France's CAC 40 surged 1.3 percent and the U.K.'s FTSE 100 added 1.1 percent.