European Shares Rise As US Averts Shutdown

European stocks gained ground on Thursday after U.S. Senate Majority Leader Chuck Schumer said that Senators have reached a deal to avoid a government shutdown on October 1.

The Senate will vote on legislation today, which will keep the government funded through December 3.

Senate Republicans blocked the House plan on Monday amid clashes over raising the debt ceiling.

The pan European Stoxx 600 rose half a percent to 457.40 after rising 0.6 percent in the previous session.

The German DAX was marginally higher while France’s CAC 40 index gained 0.4 percent and the U.K.’s FTSE 100 was up half a percent.

Swedish engineering company Sandvik Group was moving lower after announcing it has completed the acquisition of CNC Software Inc.

Clothing retailer H&M dropped 1 percent despite posting a 14 percent sales growth in the third quarter.

Cloud communication services provider Sinch jumped 4.3 percent after it agreed to buy email delivery platform Pathwire for $1.9 billion.

Belgian retailer Colruyt plunged 7.3 percent after lowering its full-year guidance.

Mining stocks rebounded, with Anglo American rallying nearly 3 percent. Antofagasta and Glencore both rose about 1 percent.

Drinks giant Diageo rallied 2.2 percent. After reporting a strong start to the fiscal year, the company said that it expects organic operating margins to benefit from a further recovery in sales volumes.

Online fashion brand Boohoo slumped 12 percent after warning on its profit margins.

In economic releases, the euro zone jobless rate fell to 7.5 percent in August from 7.6 percent in July, Eurostat data showed – matching forecasts.

The German unemployment rate held steady at seasonally adjusted 5.5 percent in September, data published by the Federal Labor Agency revealed. The expected rate was 5.4 percent.

The U.K. economy grew more than initially estimated in the second quarter on robust consumption, revised data from the Office for National Statistics showed.

Gross domestic product grew 5.5 percent sequentially instead of 4.8 percent growth estimated previously. The expansion has reversed first quarter’s 1.4 percent contraction.

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