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European Markets Struggle Ahead Of U.S. Election Results

The majority of the European markets ended Tuesday's session with small losses. The markets struggled throughout the day due to an abundance of investor caution. Traders are awaiting the results of today's midterm elections in the United States.

The election results, which will likely remain unknown until tomorrow, will decide control of both the House and Senate and could have a major impact on President Donald Trump's ability to enact his pro-business agenda.

Traders are also looking forward to the Federal Reserve's policy decision on Thursday. The central bank is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

The pan-European Stoxx Europe 600 index weakened by 0.26 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.31 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.50 percent.

The DAX of Germany dropped 0.09 percent and the CAC of France fell 0.51 percent. The FTSE 100 of the U.K. declined 0.89 percent and the SMI of Switzerland finished lower by 0.18 percent.

In Frankfurt, Hugo Boss declined 3.69 percent after its third-quarter net income attributable to equity holders of the parent company declined 18% year-over-year.

In London, Wm Morrison Supermarkets fell 3.95 percent after its Group like-for-like sales excluding fuel rose 5.6 percent for the third quarter.

Weir Group climbed 5.06 percent after its third quarter orders for continuing operations were up 16 percent.

Eurozone's private sector expanded at the weakest pace in over two years in October as both manufacturing and services recorded slower rates of growth, latest survey data from IHS Markit showed on Tuesday.

The composite Purchasing Managers' Index, or PMI, fell to 53.1 from September's 54.1. The reading was the lowest since September 2016. The flash reading for the composite PMI was 52.7.

Eurozone's producer price inflation accelerated for a fifth straight month in September, preliminary data from Eurostat showed on Tuesday. Producer prices grew 4.5 percent year-on-year following a 4.3 percent increase in August, which was revised from 4.2 percent. Economists had forecast a 4.3 percent rise.

Germany's services sector expanded more-than-expected at in October, albeit at a slowest pace in three months, survey data from IHS Markit showed on Tuesday. The services Purchasing Managers Index, or PMI, fell to 54.7 in October from September's eight-month high of 55.9. The latest reading was the lowest since July, but was above the flash estimate of 53.6.

Germany's factory orders unexpectedly grew for a second straight month in September, led by domestic demand, suggesting improvement in the economic momentum ahead.

Manufacturing new orders rose a price, calendar and seasonally adjusted 0.3 percent month-on-month in September, following a 2.5 percent growth in August, which was revised from 2 percent, preliminary data from the Federal Statistical Office showed on Tuesday. Economists had forecast a 0.5 percent decline.

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