European equities show little change ahead of US election

Investors hold their breath as they wait for midterms results

Photograph: iStock

Photograph: iStock

 

European equities were little changed at the open as investors held their breath for the US midterm results and as chemicals and industrials climbed amid trade optimism.

The Stoxx Europe 600 Index added 0.1 per cent. Deutsche Post increased 3.4 per cent. Chemical stocks also led the gains, with Linde AG rising 1.2 per cent. Copenhagen-based jewelry maker Pandora plunged 9.2 per cent after a profit warning.

It’s a big day for the markets as the US votes in the midterm elections today, with polls forecasting that Democrats might win the House majority, making President Donald Trump’s job harder. Investors also continue monitoring the trade talks as a top deputy to Chinese President Xi Jinping said Beijing remained ready to discuss a trade solution with the US.

“Absent a worsening in market conditions and/or change in voter sentiment, we do not expect Trump to alter his position on trade significantly” following the midterm elections, said Emmanuel Cau, head of European equity strategy at Barclays, in London. “The recent correction is overdone and has improved the risk-reward for equities.” – Bloomberg