European equities advanced on Wednesday, extending recent gains as investor sentiment was lifted by expectations that the U.S. government shutdown could soon come to an end.
By 08:10 GMT, Germany’s DAX index was up 0.8%, France’s CAC 40 rose 0.5%, and the UK’s FTSE 100 edged 0.2% higher.
Sentiment lifted by progress in Washington
Confidence across European markets improved after signs emerged that U.S. lawmakers were nearing a deal to reopen the federal government, which has been partially shut down since October 1. The closure has disrupted several key industries, particularly air travel.
“Sentiment improved after the U.S. Senate passed a bill to end the longest U.S. government shutdown on record,” analysts from Westpac wrote in a research note. “The House is expected to approve the bill in the coming days.”
White House economic adviser Kevin Hassett said on Tuesday that the U.S. economy should return to a growth rate of 3% to 4% by the first quarter of 2026. Hassett noted that economists estimate the shutdown shaved about 1% to 1.5% off growth, which had been close to 4% over the past year.
The bill approved by the Senate now moves to the House of Representatives for a vote expected later this week, before being sent to President Donald Trump to be signed into law.
German inflation slows
In Europe, data from Germany’s federal statistics office confirmed that inflation slowed slightly in October to 2.3%. Harmonised consumer prices—adjusted for EU comparison—stood at 2.4% year-on-year in September.
The European Central Bank, which has kept interest rates steady since June, reiterated that its policy stance remains in a “good place.” Easing inflation in Europe’s largest economy could reinforce expectations that monetary policy will remain unchanged in the near term.
Corporate updates: Bayer, E.ON, ABN Amro, Infineon
In corporate news, Bayer (TG:BAYN) reported that quarterly profits more than doubled, driven by stronger margins in its Crop Science division and solid growth in its pharmaceutical portfolio. However, the company cautioned that it expects higher one-off costs in 2025 related to litigation provisions and executive buyouts as part of its ongoing restructuring program.
E.ON (TG:A30VMX) said its nine-month net income declined due to a non-cash loss of roughly €400 million from the deconsolidation of NEW AG and its subsidiaries. Still, Europe’s largest energy network operator reaffirmed its 2025 outlook.
ABN Amro (EU:ABN) announced the acquisition of Dutch commercial lender NIBC Bank from private equity group Blackstone, bolstering its domestic market presence.
Meanwhile, Infineon Technologies (TG:IFX) raised its 2026 sales target for its AI power supply business, citing strong demand. The German chipmaker forecast moderate overall revenue growth despite currency headwinds.
Oil prices ease after recent rally
Crude oil prices edged lower on Wednesday, paring gains from the previous session. Expectations that the resolution of the U.S. government shutdown could boost energy demand had fueled Tuesday’s rally.
Brent crude futures slipped 0.5% to $64.86 a barrel, while U.S. West Texas Intermediate (WTI) futures fell 0.5% to $60.75. Both benchmarks had climbed more than 1.5% on Tuesday as traders bet that reopening the U.S. government would support a rebound in travel and fuel consumption ahead of the holiday season.
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