European Shares Surge on Earning Optimism and U.S. Shutdown Breakthrough

European shares rose as investors anticipated an end to the U.S. government shutdown and responded positively to telecom earnings. The STOXX 600 index hit a two-week high, spurred by Vodafone's upgraded forecasts. Despite this, INWIT shares dropped after lowering revenue outlook despite profit gains.

European shares experienced an upswing on Tuesday, driven by investor confidence in a potential resolution to the prolonged U.S. government shutdown and robust earnings reports from telecom giants like Vodafone and INWIT.

The pan-European STOXX 600 index increased by 0.5% to achieve a two-week peak at 576.05 points as of 0810 GMT. This surge followed a remarkable start to the week for global stocks, including Europe's largest daily gain in six months, amid relief over the U.S. government potentially resuming crucial data releases.

While the U.S. Senate passed a deal late Monday to restore federal funding and terminate the historic shutdown, market participants remained wary of the economic repercussions resulting from the funding gap. Attention also focused on corporate earnings, where Vodafone's shares rose 5% due to positive forecasts, contrasting with INWIT's 8.4% decline after a downbeat revenue projection.

(With inputs from agencies.)