European shares edged higher on Monday, lifted by gains in healthcare and technology, as investors weighed the risk of a US government shutdown that could delay the release of key economic data.
Major European stock indices opened higher on Monday as investors awaited key economic data, including Spain’s inflation and retail sales figures, the UK’s mortgage approvals, and Eurozone consumer confidence.
Germany’s DAX rose 0.47% at the open, led by a 1.61% gain in Siemens Energy.
London’s FTSE 100 advanced 0.34%, with GSK up 3.43% in early trading.
France’s CAC 40 added 0.36%, supported by a 1.39% rise in STMicroelectronics, while the Euro Stoxx 50 gained 0.38%, with Prosus climbing 1.66%.
Healthcare stocks were among the top performers.
GSK climbed after announcing CEO Emma Walmsley will step down in January, to be succeeded by insider Luke Miels.
AstraZeneca gained 1.3% after confirming it would remain headquartered in London while directly listing its shares on the New York Stock Exchange, replacing its current depository share structure.
Technology stocks advanced 0.6%, with ASMI and BE Semiconductor rising more than 1% each.
The industrial goods and services sector also added 0.4%.
Attention remained fixed on Washington, where President Donald Trump is set to meet congressional leaders later Monday to negotiate a funding extension.
Without a deal, a government shutdown would begin Wednesday—the same day new US tariffs on heavy trucks, pharmaceuticals, and other goods are due to take effect.
Analysts at Bank of America warned that a prolonged shutdown could complicate the Federal Reserve’s decision-making.
“If the shutdown lasts beyond the Fed meeting, the Fed will rely on private data for its policy decisions. On the margin, we think this may lower the likelihood of an October cut, but only marginally,” they said in a note.
US stocks on Friday
US stocks finished higher on Friday, reversing early weakness as the Nasdaq joined the Dow and S&P 500 in positive territory.
The Dow rose 299.97 points, or 0.7%, to 46,247.29. The S&P 500 gained 38.98 points, or 0.6%, to 6,643.70, while the Nasdaq added 99.37 points, or 0.4%, to close at 22,484.07.
The advance snapped a three-day losing streak, though the major averages still ended the week lower.
The Nasdaq fell 0.7% over the five sessions, while the S&P 500 slipped 0.3% and the Dow edged down 0.2%.
Friday’s rebound was supported by data showing consumer prices rose in line with forecasts.
The Commerce Department reported that the personal consumption expenditures price index climbed 0.3% in August after a 0.2% gain in July, pushing the annual rate to 2.7% from 2.6%.
Both readings matched expectations.
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