European Shares Rally Amid Fed Rate-Cut Bets and Mining Surge

European shares surged, led by banks and mining companies, positioning for substantial weekly gains. The STOXX 600 index reached a record high, buoyed by expectations of rate cuts by the Federal Reserve amid a U.S. government shutdown.

Banks, including Raiffeisen and ABN Amro, experienced notable boosts following reports of potential EU policy actions and analyst upgrades. Miners benefited from higher base metal prices, further propelling the index's gains.

Despite the U.S. government shutdown delaying a key jobs report, market sentiment remains positive with hopes of softer Fed policies. Meanwhile, healthcare stocks surged after a U.S.-Pfizer drug pricing agreement, contributing to the narrowing performance gap with Wall Street's S&P 500.

(With inputs from agencies.)