European and Asian stock markets rallied Monday as investors cheered prospects that the US government shutdown could be nearing an end, after reports said lawmakers had reached a deal to break the record-breaking 40-day impasse.

The possibility of resuming operations in the world’s biggest economy helped temper lingering worries about extended tech valuations amid talk of an AI bubble.

“The more risk-on mood means it’s pretty much a sea of green on the boards,” Neil Wilson, UK Investor Strategist at Saxo, said of the gains across stock markets.

“In the US, stock futures are pointing to solid gains,” he added.

Frankfurt led the way in Europe, up 1.7 percent nearing midday after Hong Kong closed up by a similar amount.

The dollar, which steadied versus the euro and British pound, rose a

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