The mood in Europe shifted this morning as investors seemed to sense that the prolonged US federal government shutdown might be nearing resolution. The pan‑European broad market index rose around 1.1% at the open, rebounding from its lowest close in more than three weeks. The advance was driven by improved risk appetite, particularly in the technology sector where stocks climbed by about 2.3%. This improved tone comes amid news that the US Senate has advanced a bill to reopen the government through January, although the legislation still awaits approval from the House and the President.
Against the wider market backdrop, the UK‑listed beverages company Diageo plc stood out with a strong surge of roughly 8.2% after naming Dave Lewis, former head of Tesco PLC, as its new chief executive. The board’s decision to bring in an external leader at a challenging time for the drinks industry seems to have been welcomed by the market.
Earlier this morning, major European indices all opened firmly: the EuroSTOXX gained about 1.3%, Germany’s DAX advanced 1.5%, France’s CAC 40 rose 1.0%, Spain’s IBEX added 1.2% and Italy’s FTSE MIB improved by 1.3%. These moves reflect a catch‑up from the weaker performance of Friday, when the region’s markets logged their worst week since late August amid tech sector concerns and disruption caused by the US shutdown.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
