European shares rise as traders eye potential end to US government shutdown; Diageo shines

(Reuters) -European shares rose on Monday, echoing a buoyant mood across global markets, as investors cheered initial signs that the historic U.S. government shutdown could soon come to an end, while Diageo soared after the spirits maker named a new CEO.

The pan-European STOXX 600 was up 1.1% at 571 points, as of 0809 GMT, rebounding from its lowest close in more than three weeks on Friday.

In the previous session, the STOXX index logged its biggest weekly loss since late-August, as concerns over a tech bubble, coupled with the lack of official U.S. data due to the 40-day federal government shutdown pushed investors to the sidelines.

Market jitters, however, showed signs of abating after the U.S. Senate advanced a bill that would reopen the government and keep it running until the end of January. Although, the bill would still require a green-light from the House of Representatives and U.S. President Donald Trump.

Tech stocks bounced back from recent losses, leading sectoral gains on Monday with a 2.3% jump.

Among individual stocks, Diageo climbed 8.2% after the spirits maker appointed former Tesco boss Dave Lewis as its CEO, turning to an outsider to steer it through a challenging period for the drinks industry.

(Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)