FX.co ★ European Stocks Rebound as US Shutdown Resolution Nears

On Monday, European stocks made a significant recovery, pulling back from the three-week lows reached the previous Friday. This rebound was buoyed by investors who were encouraged by early indications that the unprecedented US government shutdown might soon come to an end, along with a subsiding of concerns over last week's tech bubble. The STOXX 50 experienced a notable rise of 1.8%, reaching 5,670 points, while the broader STOXX 600 increased by 1.5%, climbing to 573 points. This optimism was spurred by US House Speaker Mike Johnson's announcement that the House of Representatives is expected to vote "as soon as possible" after the Senate narrowly passed the initial stage of legislation aimed at concluding the shutdown. Additional confidence was fuelled by a series of positive corporate developments. Commerzbank's shares soared 6.2% following an upgrade to "Buy" from Deutsche Bank. Siemens Energy saw a 4.6% increase after receiving an analogous rating enhancement from Jefferies. Diageo rose by 5.7% after appointing Dave Lewis, the former CEO of Tesco, as its new chief executive. Additionally, Novo Nordisk climbed 1.2% after it withdrew its bid for US weight-loss drugmaker, Metsera, thereby ending its bidding competition with Pfizer.