Stocks in Europe were mixed during Tuesday morning trade as investors tried to navigate through different sources of political uncertainty.
The pan-European Stoxx 600 was flat with the different sectors struggling to make strong gains. Retail and autos were the worst performers, both fell by about half of a percent.
In the retail world, earnings were at the fore. WM Morrison dropped 3.8 percent after reporting lower sales growth in the last quarter. Shoe retailer Zalando registered its slowest sales rate since it was launched 10 years ago. Shares dropped nearly 4 percent as a result.
Siemens Gamesa was up more than 8 percent after hitting its targets for the year. However, the company warned that commodity prices and emerging market volatility would hit margins in 2019. Adecco and Deutsche Post also made their way into the best performing stocks Tuesday morning after reporting third-quarter results.
Meanwhile, investors across the globe are watching U.S. voters head to the polls in the midterm elections scheduled for Tuesday, which could send ripples throughout capital markets. Back in Europe, investors are also monitoring Brexit and Italian politics.
Prime Minister Theresa May is due to have a Brexit meeting with her cabinet and she is likely to pressure the so-called Brexiteers to cede ground to ensure a deal is struck with the European Union.
Meanwhile, euro zone finance ministers continue to put pressure on Italy to submit a new budget to the European Commission and end the current standoff over the country’s spending plans.
On the data front, there will be services PMIs in the euro zone at 9:00 a.m. London time.