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European Markets Climb On U.S. Election Results

The European markets ended Wednesday's session solidly in positive territory. Investors were relieved that the results of yesterday's U.S. midterm elections were in line with expectations. The Democrats reclaimed control of the House of Representatives and the Republicans retained control of the Senate.

Traders are now looking forward to tomorrow's policy decision by the Federal Reserve. 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 advanced 1.05 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 1.21 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.07 percent.

The DAX of Germany climbed 0.83 percent and the CAC of France rose 1.24 percent. The FTSE 100 of the U.K. gained 1.09 percent and the SMI of Switzerland finished higher by 0.65 percent.

In Frankfurt, BMW Group fell 3.64 percent. The automaker's third-quarter net profit declined by nearly 24 percent year-over-year to 1.405 billion euros due to higher research and development expenses.

Adidas lost 3.62 percent. The sports shoes, clothing and accessories giant has lowered its sales growth guidance for the year.

Fraport rose 2.39 percent. The company, which operates Frankfurt Airport, confirmed its FY18 outlook after reporting a 10.4 percent rise in net profit for the first nine months of fiscal 2018.

In Paris, Crédit Agricole declined 0.83 percent despite its Q3 profit rising in line with expectations.

Veolia Environnement advanced 2.81 percent. The resource management firm confirmed its outlook for FY18 and FY19 after reporting a 15.5 percent increase in its nine-month current net income.

In London, Balfour Beatty climbed 1.20 percent after it secured a place on two major highway projects.

Homebuilder Persimmon advanced 0.55 percent. Jeff Fairburn, Group Chief Executive, has been asked to leave the company after a row over his £75m pay award.

Retailer Marks & Spencer Group slid 0.53 percent. The company has warned of challenging trading conditions for fiscal 2019 after reporting a 7.1 percent rise in first-half profit before tax.

ITV shares sank 2.98 percent. The media firm has warned of a softening in advertising revenue in the final three months of the year.

Ahold Delhaize N.V. soared 7.02 percent in Amsterdam. The company increased free cash flow guidance for 2018 to at least 2.0 billion euros and said it is firmly on track to realize at least 5 billion euros in net consumer online sales by 2020.

BBVA, Santander and Sabadell climbed in Madrid after the Supreme Court ruled that lenders were not required to pay stamp duty on mortgages.

Euro area retail sales were unchanged in September after growing in the previous month, preliminary data from Eurostat showed on Wednesday. Retail sales were flat on the month, while economists were looking for a modest 0.1 percent gain.

Germany's industrial production unexpectedly rose for a second straight month in September, adding to the positive sentiment provided by the orders data released earlier.

Production grew a calendar and seasonally adjusted 0.2 percent from the previous month, preliminary figures from the Federal Statistical Office showed on Wednesday. Economists had forecast a 0.1 percent decline.

German construction activity declined for the first time since March during October, survey data from IHS Markit showed on Wednesday. The construction Purchasing Managers' Index fell to 49.8 from 50.2 in September. A score below 50 suggests contraction in the sector.

UK house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed on Wednesday. The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

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