Europe close lower on rising uncertainty over US election
European markets ended the day lower Monday as revelations over the weekend increased uncertainty over the upcoming U.S. presidential election.
The Stoxx 600 ended Monday down 0.42 percent provisionally with the FTSE 100 off be some 0.54 percent, the German DAX down by 0.11 percent and France’s CAC 40 down by 0.73 percent. Volatility has returned with renewed uncertainty over the result of the U.S. election.
The FBI announced last Friday evening that it was looking into additional emails as part of the ongoing investigation into Hillary Clinton’s use of a private email server. The revelation could damage the chances of the Democrat candidate with just over a week before election day.
On Wall Street, the election uncertainty held back stocks on the open with the Dow Jones Industrial Average was still struggling on the flatline and the broader S&P500 up by 0.2 percent by the time Europe’s markets closed.
The oil and gas sector was the worst performer during Monday trade, falling 1.5 percent, with OPEC countries seemingly far from reaching an agreement over a supply cut. After more than 18 hours of talks in Vienna over the weekend, there was no tangible consensus from non-OPEC producers over joining the proposed production cut.
Brent crude was down, 3.3 percent trading at $48.06 a barrel, while WTI was falling 3.14 percent at $47.17 a barrel.Officials will be meeting at the end of November, hoping to have a final deal that could boost oil prices.
Bank stocks were also down on Monday, dropping 0.8 percent. In Italy, shares of Monte Dei Paschi di Siena were suspended from trade after falling as much as 4.76 percent. This came amid little news flow surrounding the firm, although the CEO is due to fly to Qatar to present a rescue plan to the Qatar Investment Authority.
However, media stocks were up as much as 0.38 percent, being the best performer in Monday’s session.
The world’s largest advertising agency, WPP, saw its shares rise 4 percent on the day after reporting profits in line with expectations. It noted a rise of 3.2 percent in like-for-like revenues for the third quarter
Meanwhile, flash estimates projected a 0.3 percent increase in euro zone GDP for the third quarter of this year, compared to the previous quarter. The European statistical office, Eurostat, also said that the 19-member economy grew by 1.6 percent on year. Inflation rose in October, hitting 0.5 percent, from 0.4 percent in September.
Elsewhere on the data front, German retail sales for September posted their sharpest fall in over two years, according to Reuters.
Source: CNBC
