Europe Rallies as Shutdown Eases, Earnings Impress

European equities pushed to fresh records as policy risk faded and earnings did the heavy lifting. The STOXX 600 added 0.5% to an all-time high of 583.4, with healthcare and luxury in front after upbeat broker commentary on Novo Nordisk and chatter about Louis Vuitton’s China footprint. 

Sentiment brightened after the US Senate advanced a stopgap bill to end a record 43-day shutdown, with traders pricing a full passage soon. The euro softened to about $1.157 per € as the dollar steadied. Brent and WTI futures drifted lower, reflecting cooler supply nerves. In the UK, gilt yields climbed as Westminster intrigue lingered, yet the FTSE 100 still edged higher toward the 10,000 mark, setting fresh records.

Single-stock moves told the story. SSE surged more than 12% after outlining a £33bn capex plan to 2027, part-funded by a £2bn equity raise alongside debt, asset sales and internal cash flow. BAE Systems flagged resilient demand, backing sales growth of 8–10% and underlying operating profit growth of 9–11%, with £27bn orders booked year-to-date and about £1.5bn slated for dividends and buybacks in 2025. Also, Google’s €5.5bn commitment to Germany’s AI build-out added to the risk bid.

What Does this Mean for Me?

Overnight, SoftBank’s decision to sell its entire $5.83bn Nvidia stake knocked its shares about 10% in Tokyo, a reminder that AI euphoria can cut both ways. Still, bulls argue that once Washington finalizes funding, focus will pivot to US macro prints, including Q3 GDP, while Europe rides earnings upgrades and index-level momentum.