Europe open: Shares jump on Wall St run despite French volatility

The pan-regional Stoxx 600 index was up 0.82% to 638.76 at 0717 GMT with all major bourses higher.

France’s CAC 40 gained 0.47% as spreads with safer German bonds tightened to around 137 – 141 basis points after hitting an intra-day high of 156 on Monday on rising fiscal concerns over the country’s swelling deficit.

The government has proposed a massive package of tax rises and spending cuts which is expected to face widespread public protest.

France central bank governor Emmanuel Moulin warned the country risked being "gradually strangled by rising interest rates" if the government could pass its budget proposals.

Spain's IBEX was up almost 1% after the socialist Sanchez called a snap poll for November 29 in response to right-wing parties blocking his government's attempt to deal with a spike in housing costs.

Political uncertainty across the continent also hit the euro, which slipped to $1.12 against the dollar

Meanwhile in Germany, manufacturing orders slumped in August, falling more than expected. Factory orders were down 10.6% month on month, according to the federal statistics office, but were up 2.7% compared with August last year.

"Global equity markets continued their march toward record highs as investors shrugged off elevated oil prices, multi-decade highs in sovereign bond yields, and deepening political risk across Europe," said Tickmill Group market strategy partner Patrick Munnelly.

"A megacap technology rally propelled the Nasdaq 100 to a fresh all-time high, while strong momentum in Nvidia and Microsoft left the S&P 500 within striking distance of its peak. AI-linked earnings growth continues to overpower broader macro discomfort, providing an effective floor for risk appetite."

Reporting by Frank Prenesti for Sharecast.com