European Stocks Rebound as US Shutdown Resolution Nears

European stocks rallied on Monday, rebounding from three-week lows hit on Friday, as investors welcomed early signs that the historic US government shutdown could soon be resolved and last week’s tech bubble concerns eased.

The STOXX 50 surged 1.8% to 5,670 points, while the broader STOXX 600 climbed 1.5% to 573 points, after US House Speaker Mike Johnson said the House of Representatives should vote “as soon as possible” following the Senate’s narrow approval on Sunday of the first stage of a bill to end the shutdown.

Optimism was further supported by a wave of upbeat corporate news.

Commerzbank jumped 6.2% after receiving a “Buy” upgrade from Deutsche Bank.

Siemens Energy advanced 4.6% following a similar rating upgrade from Jefferies.

Diageo gained 5.7% after naming former Tesco CEO Dave Lewis as its new chief executive.

Meanwhile, Novo Nordisk rose 1.2% after withdrawing its bid for US weight-loss drugmaker Metsera, ending its bidding battle with Pfizer.