European Markets Surge on U.S. Shutdown Hopes and Strong Earnings

European shares hit a second record close, buoyed by optimism surrounding the U.S. government shutdown resolution and robust corporate earnings, especially in the banking sector. The STOXX 600 index rose 0.7%, with notable performances from financial stocks and companies like SSE and Infineon driving gains.

European shares recorded their second consecutive record close, driven by investor optimism over resolving the U.S. government shutdown and positive corporate earnings. The STOXX 600 index increased by 0.7% on Wednesday, with significant contributions from financials.

France's CAC 40 and Spain's IBEX rose by 1% and 1.4% respectively, largely due to strong performances in the banking sector. Nick Saunders, CEO of Webull UK, attributed the positive market sentiment to the potential end of the U.S. shutdown and robust earnings reports.

Major gainers included ABN Amro, climbing 2.6% after announcing upbeat quarterly earnings and acquiring NIBC Bank. Meanwhile, Britain's SSE soared 16.8% following a major investment plan. Nonetheless, companies like FLSmidth & Co and Edenred faced challenges, with shares falling due to disappointing earnings and regulatory warnings.

(With inputs from agencies.)