Global markets opened the week on a strong note as optimism grew that the longest US government shutdown in history could soon come to an end. Investors welcomed signs of political progress after a late-night test vote in the Senate on Sunday pointed toward a potential bipartisan deal to reopen the government.
The news sent European stocks higher in early trading on Monday, with Germany’s DAX climbing 1.5%, France’s CAC 40 up 1.4%, and London’s FTSE 100 gaining 0.8% by 11:00 CET. US stock futures also rose, setting the tone for a risk-on trading session across Asia, Europe, and North America.
Investor sentiment was buoyed by hopes that the shutdown — now dragging into its 40th day — could soon be resolved. The closure of government departments has delayed key economic data releases, including employment figures, creating uncertainty for markets and complicating the Federal Reserve’s decisions on interest rates.
AJ Bell investment director Russ Mould said the latest Senate developments were encouraging, though challenges remained. “The impasse has hit the wider economy and deprived investors of critical data on jobs and inflation,” he noted. “This uncertainty has made it difficult for the Federal Reserve to make informed policy choices, so any progress toward reopening the government is welcome.”
The positive sentiment also spilled over into corporate headlines, particularly in the UK, where shares in drinks giant Diageo surged 6.4% in early trading. The rally followed the announcement that former Tesco chief executive Dave Lewis would take over as Diageo’s new CEO in January 2026.
Lewis, nicknamed “Drastic Dave” for his turnaround success at Tesco, is seen as a major hire for the struggling company. Diageo, one of the world’s largest spirits producers, has faced sluggish post-pandemic sales and softer demand in its key markets. Analysts say a resolution to the US shutdown could benefit the company, given the United States is its largest consumer base.
Dan Coatsworth, head of markets at AJ Bell, said investors were “clearly excited about Diageo’s prospects under Lewis,” describing the move as a “pleasant surprise.” He added, however, that Lewis “will ultimately be judged on results, not expectations.”
Elsewhere, currency markets were relatively stable. The euro held around $1.15, while the yen strengthened by 0.5% to ¥154.1 per dollar. The British pound slipped slightly, down 0.1% to $1.315. Gold prices rose 1.8% to roughly €3,521 per troy ounce, remaining a popular safe-haven asset despite easing investor anxiety.
Technology stocks also gained in pre-market trading, with Nvidia shares up around 3.5%, reflecting broader optimism.
In other European corporate news, Danish pharmaceutical company Novo Nordisk saw its shares rise 2.3% after announcing a partnership with Indian firm Emcure Pharmaceuticals to market its weight-loss drug Wegovy under a new brand name in India. However, Novo Nordisk failed in its bid to acquire US-based biotech company Metsera, which accepted a revised $10 billion offer from Pfizer.
Overall, the week began with cautious optimism across global markets, as investors bet on a resolution to Washington’s political stalemate and looked ahead to the return of key economic data that could guide the next phase of monetary policy.
