European Markets Rally as U.S. Shutdown Nears Resolution

European shares surged as the U.S. government shutdown showed signs of ending. The STOXX 600 saw its biggest gain in nearly three weeks. Investors embraced risk, spurred by tech stocks recovery and major banking upgrades. Diageo's new CEO appointment also buoyed spirits. Euro zone investor morale still remains cautious.

European markets experienced a surge on Monday, influenced by signs that the U.S. government shutdown might soon conclude, alleviating some uncertainties. The pan-European STOXX 600 index rose by 1.4%, marking its most significant daily increase in almost three weeks.

Major markets in Germany and France saw gains of 1.7% and 1.3%, respectively. This follows a tough session where technology sector concerns and the U.S. shutdown had led to the STOXX's biggest weekly drop since August.

Contributing to the rise, tech stocks rebounded, and companies like Siemens Energy and Commerzbank enjoyed notable boosts. Additionally, Diageo's CEO appointment of former Tesco chief Dave Lewis further stirred positive investor sentiment.

(With inputs from agencies.)