European stocks climbed, rebounding from their biggest decline in a month, as investors assessed the impact of a partial shutdown of the U.S. government.

The Stoxx Europe 600 Index added 0.8 percent to 312.86 at the close of trading, its biggest rally in three weeks, after a report showed that manufacturing activity in the euro area expanded for a third month in September. The equity benchmark fell by the most since Aug. 30 yesterday as U.S. politicians failed to agree on a compromise budget and Silvio Berlusconi pulled his ministers out of Italy’s coalition government.

U.S. lawmakers in Washington missed a midnight deadline to reach a compromise to continue funding the government. The shutdown will put as many as 800,000 federal employees out of work today, closing national parks and halting some government services. The Democrat-controlled Senate earlier voted 54-46 against a funding bill from the Republican-controlled House of Representatives because it made major changes to President Barack Obama’s health-care legislation.

The parties had no immediate plans for further negotiations. Some lawmakers expressed concern that the shutdown could lead to a deadlock over the need to raise the nation’s debt limit to avoid a default. The U.S. will run out of money to pay all of its bills at some point between Oct. 22 and Oct. 31 unless Congress increases the federal government’s borrowing authority, according to the Congressional Budget Office.

A report from Markit Economics showed that its euro-zone factory index fell to 51.1 in September, matching the preliminary estimate and the median forecast of economists. Readings greater than 50 mean that manufacturing activity increased.

National benchmark indexes advanced in every western-European market except for Britain. Germany’s DAX added 1.1 percent, while France’s CAC 40 Index increased 1.3 percent. The U.K.’s FTSE 100 slipped less than 0.1 percent.

Vestas jumped 6.8 percent to 148.50 kroner. Bank of America raised its price estimate to 180 kroner from 150 kroner, predicting that the company will pay off almost all its debt by 2015, earlier than the consensus forecast.

Wolseley Plc added 3.1 percent to 3,296 pence, its largest gain in more than five weeks. The world’s biggest distributor of plumbing and heating products said so-called trading profit in the 12 months through July climbed to 725 million pounds ($1.2 billion) from 665 million pounds a year earlier. Analysts had predicted earnings of 704 million pounds, according to the average of 20 estimates compiled by the company. Wolseley proposed a special dividend payout of 300 million pounds.

Unilever slipped 2.8 percent to 27.94 euro after saying sales growth slowed as trading in emerging markets deteriorated at a faster rate. Underlying group sales for the three months will rise 3 percent to 3.5 percent, the maker of Lipton tea and Dove soap said late yesterday in a statement. That compares with 5 percent growth in both the first half and second quarter.

U.S. stock-index futures advanced as investors weighed the impact of the first partial government shutdown in 17 years.

Global Stocks:

Nikkei  14,484.72 +28.92 +0.20%

FTSE 6,441.02 -21.20 -0.33%

CAC 4,168.41 +24.97 +0.60%

DAX 8,629.72 +35.32 +0.41%

Crude oil $102.01 -0.31%

Gold $1316.80 -0.77%

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Nike (NKE) upgraded from Hold to Buy at Argus, target raised to $84

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European stocks rose , rebounding while from the biggest decline this month as investors assessed the impact of the partial interruption of the U.S. government. U.S. index futures and Asian shares also rose .

Note that the administration of U.S. President Barack Obama on Monday night ordered federal agencies to begin partial " ordered the suspension " of the federal government, because Congress did not approve funding for the next fiscal year, which began Oct. 1 .

Stoxx Europe 600 Index added 0.3 percent, while reaching the level of 311.36 .

The course of trading was also influenced by the data for the euro area , which showed that up to September Eurozone manufacturing sector continued to expand, albeit at a slower pace than was seen in the previous month.

According to the report, the purchasing managers' index for the sphere of production fell in September to a level of 51.1 , compared with 51.4 in August ( 26 -month maximum). Note that the final result was in line with the preliminary estimate , released last month, and also confirmed the predictions of experts. We add that , in spite of the recession , the manufacturing sector remains above the 50 level for the third month in succession.

Meanwhile, data showed that the sub- index of production and new orders also continued to expand, which is celebrated for the third month in a row, although the pace of growth was slightly slower than in August , when it was recorded 27 - month peak . We add that the expansion of the manufacturing sector was

seen in all euro area countries except France and Greece.

Wolseley shares rose 2.3 percent to 3,270 pence . The world's largest distributor of water supply systems and products for heating said that the so -called trading profit for the 12 months to July rose to 725 million pounds ($ 1.2 billion ) from 665 million pounds a year earlier . Analysts have predicted that the profit will be at the level of 704 million pounds. In addition, the part of Wolseley proposed special dividend of 300 million pounds.

Cost Unilever fell 3.4 percent to 27.77 euros after the company said a slowdown in sales growth as well as the strengthening of the euro led to a further slowdown in emerging markets. Base sales for the third quarter is projected to have grown by 3-3.5 percent, compared with an increase by 5 percent in the first and second quarter.

At the moment :

FTSE 100 6,449.89 -12.33 -0.19 %

CAC 40 4,174.89 +31.45 +0.76 %

DAX 8,646.99 +52.59 +0.61%

Asian stocks rose, with the regional benchmark index extending its September rally, after Japanese Prime Minister Shinzo Abe said the nation will raise its sales tax as planned. Gains were limited by the first partial U.S. government shutdown in 17 years.

Nikkei 225 14,484.72 +28.92 +0.20%

Hang Seng 22,859.86 -347.18 -1.50%

S&P/ASX 200 5,206.8 -12.08 -0.23%

Shanghai Composite 2,174.66 +14.64 +0.68%

NSK Ltd., a Japanese bearings maker, jumped 3.3 percent after boosting its net-income forecast by 13 percent.

Ube Industries Ltd., a chemical maker, soared 6 percent in Tokyo.

Nikkei 225 -2,06 14,455.8 -304,27%

Hang Seng 22,859.86 -347,18 -1,50%

S & P / ASX 200 5,218.88 -88,18 -1,66%

Shanghai Composite 2,174.66 14,64 0,68%

FTSE 100 6,462.22 -50.44 -0.77%

CAC 40 4,143.44 -43.33 -1.03%

DAX 8,594.4 -67.11 -0.77%

DJIA 15,129.70 -128.57 -0.84%

S&P 500 1,681.63 -10.12 -0.60%

NASDAQ 3,771.48 -10.12 -0.27%