FX.co ★ European Stocks Close Higher

European stocks experienced a volatile trading day on Tuesday but ultimately closed with notable gains, as investors reassessed the potential consequences of a U.S. government shutdown on the European labor market and any subsequent actions by the Federal Reserve. The Eurozone's STOXX 50 index increased by 0.4% to reach 5,530, while the STOXX 600 climbed 0.6% to 558. This development came as the U.S. government was poised to commence its shutdown, with President Trump proposing significant reductions in public-sector employment, compounding existing labor market pressures. This scenario prompted a global retreat in yields over the third quarter. The session saw industrial heavyweights leading the charge, with companies such as Wolters Kluwer, Safran, Siemens, and Schneider each posting gains ranging from 1.5% to 2%. Banking sector performance was also robust, with Santander and UniCredit each rising by 1.3%. Throughout the third quarter, the STOXX 50 recorded a 4.2% increase, while the STOXX 600 rose by 3.1%.