European Stocks Surge as U.S. Shutdown Nears Resolution

European markets opened sharply higher on Monday after U.S. lawmakers moved closer to ending the record-breaking government shutdown that has rattled investors and disrupted key services.

The CAC 40 in Paris climbed 1.1% to 8,035.06, while Frankfurt’s DAX gained 1.6% to 23,937.44. The broad-based Stoxx 600, which includes major London-listed stocks, also advanced 1.1% to 571.05.

Investors had grown increasingly anxious about the economic toll of the shutdown, which stalled several government operations and disrupted air travel heading into the busy Thanksgiving period.

Adding to those concerns, a University of Michigan survey last week showed consumer sentiment dipped in November compared with October.

Optimism returned late Sunday after a group of Senate Democrats joined Republicans in a procedural vote to advance a bipartisan deal that would fund government operations through the end of January. The agreement followed weeks of tense negotiations over health care subsidies, food benefits, and President Donald Trump’s controversial firings of federal employees.

The Senate now has up to 30 hours to debate the measure before a final vote. Once approved, the bill will move to the Republican-controlled House of Representatives and then to President Trump for his signature.