European Stocks Edge Higher as U.S. Government Shutdown Ends; Burberry Surges 7% on Strong Sales
European markets opened higher on Thursday, tracking global optimism after the United States ended its protracted government shutdown. The pan-European Stoxx 600 index was up nearly 0.1% by mid-morning in London, as investors digested the political resolution in Washington and its potential ripple effects across global markets.
Market performances were mixed across the region. While the U.K.’s FTSE 100 and Germany’s DAX slipped 0.28% and 0.22% respectively, France’s CAC 40 climbed 0.53%, and Italy’s FTSE MIB gained 0.29%. Spain’s Ibex 35 also edged upward, reflecting cautious optimism among European investors as corporate earnings and energy updates drove sentiment.
Luxury fashion house Burberry was the standout performer, soaring 7% after reporting its first comparable store sales growth in two years. The British brand posted a 2% quarterly rise, surpassing analyst expectations of 1%, with solid demand from the Americas and China. Analysts say the results underscore the company’s successful turnaround efforts amid a challenging retail landscape.
Elsewhere, pharmaceutical stocks saw notable gains. Denmark’s ALK climbed 11% after raising its growth forecast to 13–15%, while Zealand Pharma added 4.5% amid strong sales momentum. On the downside, Siemens Healthineers fell 2.5% following reports that parent company Siemens will distribute its 30% stake in the medtech firm to its own investors. Energy stocks were volatile after the International Energy Agency (IEA) raised its global oil supply outlook, with BP dropping 1.55% and Shell edging lower, while TotalEnergies gained 0.74%.
In broader economic data, the U.K. economy grew 0.1% in the third quarter, signaling modest recovery ahead of the Autumn Budget. Deutsche Bank’s Chief U.K. Economist, Sanjay Raja, noted that “the summer of 2025 was a little disappointing” and warned that inflation and budget uncertainty could slow spending through year-end. Meanwhile, investors await key industrial production figures from the European Union as market sentiment continues to improve following the end of the U.S. government shutdown.
source: cnbc