LONDON Oct 15 A major European stock index hit
a 2-1/2-year high and Germany's DAX a record peak on Tuesday on
growing optimism that U.S. lawmakers would soon agree a deal to
re-open the government and avoid a possible default.
The Euro STOXX 50 rose 0.4 percent to its
highest since mid-2011 and the DAX gained 0.5 percent
to a new high after U.S. Senate Majority Leader Harry Reid, a
Democrat, and his Republican counterpart, Mitch McConnell, ended
a day of talks on Monday, with Reid saying they had made
"Optimism that a deal will soon be agreed continues to
prevail. Relief that politicians have taken the U.S. to the edge
and back again is clear," said Keith Bowman, equity analyst at
"The move allows investors to again concentrate on
fundamentals, including the now unfolding third-quarter results
The plan under discussion would end a partial government
shutdown and raise the debt ceiling by enough to cover the
country's borrowing needs at least through mid-February 2014,
according to a source familiar with the talks.
The FTSEurofirst 300 index of top European shares
rose 0.7 percent to 1,259.35 points after setting a two-week
high. The index is up more than 10 percent this year.
However, Schindler, the top decliner, fell 5.3
percent, after saying net profit fell to 368 million Swiss
francs ($405.62 million) during the first nine months of the