European markets set to open higher, building on positive momentum

LONDON — European stocks are expected to open higher on Thursday, building on positive momentum in the previous session.

The U.K.’s FTSE index is expected to open 0.37% higher, Germany’s DAX up 0.51%, France’s CAC 40up 36% and Italy’s FTSE MIB up 0.49%, according to data from IG.

The positive start for Europe comes after gains for regional indices on Wednesday; the pan-EuropeanStoxx 600finished trading up 1.2%, with most sectors and major bourses in positive territory.

Market focus remains on the U.S. government shut downafter Republicans — including President Donald Trump — and Democrats failed to agree on a short-term deal on government funding earlier this week.

The shutdown meansSeptember jobs data will not be released on Friday, as scheduled, clouding the outlook for the Federal Reserve just weeks ahead of its next meeting.

Still, the central bank is expected announce an interest rate cut at its Oct. 28-29 meeting after Wednesday morning’s ADP data reflected a drop in private payrolls last month, and as further ramifications of the ongoing shutdown remain to be seen.

U.S. stock futures were little changed Wednesday night, however, after theS&P 500logged a fresh high and investors appeared to shrug off concerns tied to the latest U.S. government shutdown.

Overnight in Asia-Pacific markets, South Korea’s Kospi index jumped more than 3% Thursday to hit an all-time high,lifted bygains in heavyweight Samsung Electronics and SK Hynix.

In Europe on Thursday, data releases include EU unemployment and French budget figures. There are no major earnings releases due.