Europe midday: Shares gain as end to US shutdown in sight

(Sharecast News) - European shares approached record territory as an end to the US government shutdown inched closer overnight.

The pan-regional Stoxx 600 index was up 0.67% to 576.74 at 1145 GMT with all major continental bourses rising. Britain's FTSE gained almost 1% to hit a record high, while Germany's DAX posted a more modest 0.07% gain.

Overnight, US Senators approved a bill to provide federal government funding to the end of January - ending the longest shutdown in the country's history.

Seven Democrats broke ranks and voted in favour of the bill, which passed 60-40. It will now be sent to the House of Representatives where the Republicans have a majority.

If successful, the bill will be put before President Donald Trump to be signed into law.

In the UK, shares were boosted after official data showed a slowing in wage growth, fuelling hopes that the Bank of England will cut rates next month.

"Labour market signals are softening across the board, with payrolls falling again in October and unemployment nudging higher. Markets are now pricing in a 73% chance of a December rate cut, as the case for policy easing gains traction," said Hargreaves Lansdown analyst Matt Britzman.

Swiss shares were given a boost as US President Donald Trump said he was working with the country on a deal to lower the 39% tariff rate it faces on exports.

In equity news, shares in Vodafone rose as the telecoms operator lifted earnings guidance and raise its dividend for the first time in eight years.

INWIT fell sharply as the Italian mobile telecoms towers operator cut its revenue outlook for the following year despite a rise in quarterly profit.

Reporting by Frank Prenesti for Sharecast.com