BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Despite the U.S. federal government officially shutting down after the Senate failed to reach an agreement on a last-minute spending bill, European stocks closed on a strong note on Wednesday, led by gains in the healthcare sector.
Tariff concerns eased after Pfizer struck a deal with the Trump administration to allow patients to purchase discounter prescription drugs through a new federal website.
Investors also digested regional economic data, and some corporate news. Expectations of more monetary easing by the Federal Reserve contributed as well to the positive mood in the markets.
The pan European Stoxx 600 climbed 1.15%. The U.K.'s FTSE 100 gained 1.03%, Germany's DAX ended 0.98% up, and France's CAC 40 closed higher by 0.9%. Switzerland's SMI surged 2.07%.
Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Spain, Sweden and Turkiye closed higher.
Iceland and Russia ended weak, while Austria closed flat.
In the UK market, AstraZeneca soared 11.2%, GSK climbed about 6.2% and Hikma Pharmaceuticals surged 5.75%.
JD Sports Fashion jumped nearly 7%. Melrose Industries rallied 3.6%. Land Securities, Centrica, Croda International, Standard Chartered, Spirax Group, Berkeley Group Holdings, Ashtead Group and Weir Group also closed sharply higher.
British baker and fast-food chain Greggs climbed 6.3% as it reported 6.1% sales growth over the third quarter of 2025.
Spirits major Diageo moved up by about 1.3% after pricing €1 billion of fixed rate bonds under its European Debt Issuance Program.
Babcock International, Tesco, Coca-Cola HBC, Games Workshop and Imperial Brands lost 2 to 4%. Antofagasta, Auto Trader Group, IAG, Relx, Howden Joinery, Beazley, Experian and Sainsbury (J) also ended notably lower.
In the German market, Merck zoomed more than 10%. Bayer gained about 5%. Siemens Energy rallied 4.7%.
Adidas, Qiagen, RWE, Brenntag, Mercedes-Benz, Continental and Allianz also closed with strong gains.
Rheinmetall, Scout24, Daimler Truck Holding, Deutsche Boerse and Beiersdorf closed weak.
In the French market, Sanofi surged about 8.5%. ArcelorMittal climbed more than 5%. Stellantis, Schneider Electric, Engie, Eurofins Scientific, Vivendi, Credit Agricole, BNP Paribas, Saint-Gobain, Michelin and Edenred gained 1 to 3.5%.
Thales, Danone, Pernod Ricard, Orange, Legrand, L'Oreal and Safran closed weak.
In economic news, UK house prices growth accelerated in September amid easing borrowing costs, data from the mortgage lender Nationwide Building Society showed. House prices logged an annual growth of 2.2% in September, slightly faster than the prior month's 2.1% rise. The annual increase was forecast to ease to 1.8%.
On a monthly basis, house prices rebounded 0.5% after a 0.1% drop in August. This was also faster than economists' forecast of 0.2%.
Data showed that house prices climbed 0.4% in the third quarter from the preceding quarter. Compared to the last year, house prices increased 2.3%.
The S&P Global UK Manufacturing PMI dropped to 46.2 in September 2025, a five-month low and well below the 50.0 growth threshold, marking a twelfth straight month of contraction, in line with preliminary estimates, data drom S&P Global showed.
Data from S&P Global showed the HCOB Germany Manufacturing PMI was revised higher to 49.5 in September 2025 from a preliminary of 48.5, and compared to 49.8 in August, indicating nearly stagnant conditions in the manufacturing sector.
Flash estimate from Eurostat showed Eurozone inflation accelerated in September on services and food prices. Inflation rose to 2.2% in September, in line with forecast, from 2% in August. Meanwhile, core inflation held steady at 2.3%.
On a monthly basis, the harmonized index of consumer prices edged up 0.1% in September.
The HCOB France Manufacturing PMI fell to 48.2 in September from 50.4 in August, compared with a flash reading of 48.1, data from S&P Global showed.
Eurozone manufacturing activity worsened in September reflecting a reduction in new orders and a sharper fall in job shedding, final purchasing managers' survey data compiled by S&P Global showed.
The HCOB manufacturing purchasing managers' index fell to 49.8 in September from 50.7 in August. The reading was above the flash estimate of 49.5.
Flash estimate from Eurostat showed Eurozone inflation accelerated in September on services and food prices. Inflation rose to 2.2% in September, in line with forecast, from 2% in August. Meanwhile, core inflation held steady at 2.3%.
On a monthly basis, the harmonized index of consumer prices edged up 0.1% in September.
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