European Stocks Rise as Investors Cheer Earnings and U.S. Shutdown Deal
European shares moved higher on Tuesday as investors welcomed signs of an end to the U.S. government shutdown and reacted positively to upbeat corporate earnings from major telecom players, including Vodafone and INWIT.
STOXX 600 Hits Two-Week High
The pan-European STOXX 600 index climbed 0.5% to reach a two-week high of 576.05 points by 08:10 GMT.
Global stocks started the week on a strong note, with European equities recording their biggest daily gain in six months on Monday. Markets were encouraged by expectations that the end of the U.S. government shutdown would allow for the resumption of key economic data releases, which had been delayed during the funding lapse.
Late Monday, the U.S. Senate approved a deal to restore federal funding, effectively ending the longest shutdown in U.S. history.
Cautious Optimism Amid Economic Concerns
While sentiment improved, some investors remained cautious about the potential economic fallout from the prolonged shutdown. Analysts noted that the disruption may have already weighed on parts of the U.S. economy, the world’s largest growth driver.
Earnings Drive Telecom Stocks Higher
Market attention also turned to the ongoing European earnings season, with telecom stocks in focus.
Vodafone (L:VOD) shares jumped 5%, lifting the broader telecommunications sector, after the British company raised its full-year forecast for earnings and cash flow. Vodafone also reported a return to quarterly revenue growth in Germany, its largest market.
In contrast, INWIT shares tumbled 8.4% after Italy’s biggest mobile tower operator cut its revenue outlook for next year, despite reporting a strong quarterly profit increase.
