Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European stocks hit one-week high as investors await U.S. election outcome

Stock MarketsNov 03, 2020 12:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Sruthi Shankar

(Reuters) - Banking and auto stocks propelled the European stocks benchmark to a one-week high on Tuesday, while investors anticipated a clear win for Democrat Joe Biden in the U.S. presidential election would lead to more economic stimulus.

The pan-European STOXX 600 (STOXX) closed 2.3% higher - its best day since mid-June. Bourses in Frankfurt (GDAXI), Paris (FCHI) and London (FTSE) saw similar gains.

Stock markets worldwide found strength in signs that Biden held a strong and consistent lead in national opinion polls over Republican President Donald Trump, although the race is tighter in several swing states.

A Biden win is widely considered to be supportive for European equities in the near-term because of expectations it would mean a bigger stimulus package and better trade ties with the United States.

Banks (SX7P) led gains among European sectors, with French lender BNP Paribas (PA:BNPP) jumping 6.1% as a surge in currency and commodity trading helped it beat quarterly profit estimates.

Automobiles & parts sector (SXAP), which has borne the brunt of the Trump administration's trade war with China, gained 3.5%.

Boosting the index, luxury automaker Ferrari (MI:RACE) surged 7.1% after it forecast 2020 earnings at the top of its previous guidance range as new models such as the hybrid SF90 Stradale start to reach customers.

Insurers (SXIP), financial services companies (SXFP) and construction & materials (SXOP) were the other top gainers.

"Even though last minute surprises from the U.S. vote can't be ruled out, I believe European equities are close to a very interesting turnaround point which could mean a more 'structural' return of investor interest towards the region," said Michele Pedroni, portfolio manager at Decalia Asset Management in Geneva.

"Any reversal, however, could be jeopardised should the crisis triggered by the coronavirus pandemic drag on for too long, given that Europe has limited political and economic manoeuvre space to progressively provide support to its economy," he added.

The STOXX 600 shed almost 6% last week as soaring coronavirus cases pushed major economies including France, Germany and the United Kingdom back into partial lockdown, leading economists to cut fourth-quarter economic growth expectations.

Among other individual movers, British homebuilder Crest Nicholson (L:CRST) surged 16.5% after it reinstated its dividend and said annual earnings would top market expectations.

German meal-kit delivery company HelloFresh (DE:HFGG), which has more than doubled in value this year as lockdowns drove demand, slipped 1.2% after quarterly results.

European stocks hit one-week high as investors await U.S. election outcome
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email