Europe open: Gains limited as investors await US election news

5th Nov 2024 08:47

(Sharecast News) - European stocks opened higher on Tuesday morning, though gains were only mild as investors refrained from taking on too much risk ahead of the US elections, which have the potential to cause some big swings across global financial markets in the coming days.

The Stoxx 600 was up 0.17% at 510.06 by 1001 CET, with benchmarks across the continent trading rangebound early on.

While there will be plenty of economic data to contend with on Tuesday, the focus of the session - and likely the rest of the week - will be firmly fixed on Washington DC, with Americans set to pick between former president Donald Trump and current vice president Kamala Harris in the race for the White House.

"The time has come for the US electorate to cast their ballots if they have not done so already. But don't expect a winner to be announced in the early hours. It could be days before the winner is declared," said Kathleen Brooks, research director at XTB.

"As we get to the final stage of this race, the prediction markets are moving closer to the national polls, however, they are still predicting a win for Trump, albeit with a smaller margin."

Brent crude was rising a further 0.2% to $75.25 a barrel, after having jumped more than 2% on Monday, after OPEC+ announced delays to a planned output hike.

In economic news, activity in China's services sector picked up more than expected in October, according to a survey released on Tuesday. The Caixin services purchasing managers' index rose to 52.0 from 50.3 in September, coming in above consensus expectations of 50.5 and hitting a three-month high.

Also on tap during the session is the S&P Global/CIPS UK composite PMI, and two US service-sector PMIs from S&P Global and the ISM later on.

Market movers

Danish medical devices group Ambu was a heavy faller, dropping 12% after disappointing the market with its annual report in which it guided to 10-13% organic growth for the year ahead, slightly below the 13.8% rate achieved in the year just gone.

Vestas also dropped 12% in Copenhagen after the Danish wind turbine maker underwhelmed with its interim results, in which it warned that full-year group margins would be at the lower end of the guidance range.

Swiss recruitment firm Adecco saw shares drop 8% to the lowest in nearly three decades after a 21% drop in adjusted EBITA for the third-quarter, much lower than analysts were expecting.

In London, Schroders fell 11% despite reporting a record high in assets under management in the third quarter, as large outflows took the shine off the news.

German fashion giant Hugo Boss was also lower after reporting that third-quarter profits fell due to ongoing struggles in the luxury-goods sector.