European markets set for a varied start as U.S. government shutdown takes center stage

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Oct 01 2025

0mins

Source: CNBC

European Market Outlook: European markets are set to open mixed, with London's FTSE 100 expected to remain flat, while the French CAC 40 is projected to rise by 0.2% and Germany's DAX to fall by 0.2%. The pan-European Stoxx 600 saw a 3.1% increase in the last quarter, driven by strong performances from Spanish stocks and the banking sector.
U.S. Government Shutdown Impact: The U.S. government has shut down due to a failure to reach a funding agreement, affecting the release of crucial jobs data and creating uncertainty for the Federal Reserve ahead of its upcoming meeting.
European Security Discussions: European leaders are meeting in Copenhagen to address security concerns following recent airspace incursions attributed to Russia, with Luxembourg's Prime Minister emphasizing the need to take these provocations seriously.
Corporate Developments: In corporate news, Spanish lender Sabadell's takeover bid from BBVA gained support from a key board member, valuing Sabadell at approximately 16.97 billion euros, despite ongoing opposition from the board.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.