European markets traded mostly higher on Thursday, lifted by the end of the record-long U.S. government shutdown, while fresh data showed the U.K. economy struggling to gain momentum in the third quarter.
By 08:05 GMT, Germany’s DAX inched up 0.1% and France’s CAC 40 advanced 0.6%, whereas the U.K.’s FTSE 100 slipped 0.3%.
U.S. Shutdown Ends
Market sentiment improved after U.S. President Donald Trump signed a bill late Wednesday that restored government funding and officially ended the longest shutdown in American history.
The bill—which keeps federal operations funded through January 30—passed the House by a 222–209 vote, with support from 216 Republicans and six Democrats, after clearing the Senate earlier in the week.
The multi-week shutdown had caused significant disruption across federal agencies, with aviation and travel safety especially hard hit. Staffing shortages led to thousands of cancelled flights nationwide, adding pressure to U.S. economic activity.
U.K. Growth Nearly Stagnant
Back in Europe, new figures confirmed that the U.K. economy barely expanded in the third quarter, underscoring the sluggish backdrop as finance minister Rachel Reeves prepares to present the upcoming budget.
GDP grew just 0.1% in Q3 2025, down from 0.3% in the prior quarter, according to the Office for National Statistics. In September alone, output fell 0.1%.
James Bentley, director at Financial Markets Online, said: “Last week the Bank of England said that, in its view, inflation has peaked. Despite narrowly voting to not cut the base rate immediately, the Bank’s Monetary Policy Committee left the door wide open to a December cut.”
He added: “Today’s GDP numbers give the Bank every reason to walk through that door next month. With inflationary fears dissipating, its priority will be kickstarting the UK’s moribund growth – and a December rate cut now looks all but assured.”
Corporate Earnings Continue
European corporate news remained active:
- Siemens (TG:SIE) posted record profit and free cash flow for fiscal 2025, marking its third straight year of record earnings as strength in Digital Industries and Smart Infrastructure offset weaker Mobility orders.
- Merck KGaA (NYSE:MRK) lifted the lower end of its 2025 outlook after stronger-than-expected third-quarter results, supported by solid healthcare and life sciences performance.
- Deutsche Telekom (TG:DTE) raised its 2025 guidance following the inclusion of UScellular, and said it plans a higher dividend after reporting stronger Q3 revenue.
- Aviva (LSE:AV.) projected 11% annual growth in operating EPS over the next three years, benefiting from enhanced cost synergies after integrating Direct Line.
- Burberry (LSE:BRBY) delivered better-than-estimated second-quarter comparable sales, signalling early traction in its turnaround plan and stabilizing demand in China.
- Hapag-Lloyd (TG:HLAG) reported a 50% decline in nine-month profit and lowered the top end of its annual guidance, citing market volatility and rising costs.
- Rolls-Royce (LSE:RR.) reiterated its 2025 outlook after strong October trading supported by Civil Aerospace, Power Systems and Defence.
Oil Prices Extend Losses
Crude prices moved slightly lower, adding to Wednesday’s decline, as rising U.S. stockpiles renewed demand worries.
Brent slipped 0.1% to $62.63 a barrel, while WTI fell 0.2% to $58.39. Both benchmarks lost around 4% on Wednesday after API data showed U.S. inventories climbed by 1.3 million barrels in the week to November 7.
Oil also weakened after OPEC projected that global supplies will marginally exceed demand in 2026.
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