Europe stocks choppy as oil prices fall, Clinton optimism

European stock markets were choppy in morning trade on Tuesday despite a rally in oil prices and optimism over the U.S. presidential election campaign.

The pan-European Euro Stoxx 600 Index was hovering around the flatline. After jumping as much as 3 percent on Monday, oil prices were back in focus with prices dipping in early trade.

On Monday, major oil producer Russia said it was ready to join OPEC in an output freeze deal loosely agreed in September. The deal is aimed at cutting the global supply overhang that has weighed on prices. Goldman Sachs published a note in which it was skeptical about the deal, however.

Political news could also move markets Tuesday after a poll showed that Democratic presidential nominee Hillary Clinton has doubled her lead over her Republican rival Donald Trump.

According to the latest NBC News/Wall Street Journal poll, Trump now holds support from 38 percent of likely voters. Support for Hillary Clinton, meanwhile, has risen to 52 percent. Trump’s decline in the polls comes after the release of a video from 2005 in which he made crude comments about women. The poll was conducted over the weekend, after the video emerged on Friday, and was completed before Sunday’s presidential debate.

Samsung drops

In individual stock news, polymer manufacturer Victrex was at the top of the STOXX 600 after its fourth-quarter revenues beat expectations.

French luxury goods house LVMH reported a rise in third-quarter sales after the bell on Monday, with shares rallying on Tuesday. Other luxury names such as Christian Dior were dragged higher.

Airbus said it plans to slow the assembly rate of its A380 jet to 1 aircraft per month from 2018, sending shares of the firm lower. Sentiment towards the stock was not helped by a target price cut from Deutsche Bank.

Meanwhile in Asia, shares were mixed Tuesday, with Samsung Electronics in focus after the stock extended its losses in reaction to what appeared to be a botched recall of its Galaxy Note 7 smartphone.

Source: CNBC

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