Europe stocks eye higher open on bets of a Clinton victory
European stocks opened higher Tuesday on clearer prospects that Hillary Clinton may become the next U.S. President.
The Pan-European Stoxx 600 climbed 0.07 percent on Tuesday’s opening.
The campaign to win the White House has officially ended and US voters decide Tuesday who will replace Barack Obama.
The Dow ended Monday on a high note, with the transport sector rising more than 3 percent – the highest level since August 2015, and the dollar also advanced, edging slightly lower.
The Japanese finance minister, Taro Aso, said that if the U.S. election triggers changes to currencies, the Japanese authorities will act to ensure stability of the yen.
Prime Minister Theresa May concludes Tuesday a three-day trip to India, where she has tried to develop stronger trade ties. David Davis, the Brexit minister, said Monday that there will be a parliamentary vote before the triggering of Article 50 .
Earnings
In the earnings calendar, Tuesday will see Imperial Tobacco reporting its quarter-three figures.
Credit Agricole reported Tuesday a net income of 1.86 billion euros ($2.1 billion) in the third quarter of this year, above analysts expectations of 1.70 billion euros. The French bank said the better-than-expected figures are the result of its successful restructuring process.
Marks & Spencer reported Tuesday a 90 percent fall in its half-year profits. Its net profit stood at £16.9 million ($20.96 million) for the first six months of 2016, compared to £172.7 million a year ago. The British retailer is closing about 60 clothing and home stores in the U.K., but will continue to invest in food stores. The firm added that it would not raise prices to offset the induced pressures from a fall in sterling.
Royal Bank of Scotland is creating a £400 million scheme to reimburse customers that have been mistreated, including small businesses that declared bankruptcy so the bank could buy the assets at a more affordable price. RBS is also adopting a new complaints review process. The Financial Conduct Authority said it has been involved in the changes and agrees with the steps taken by the bank.
Data released Tuesday showed the German industrial output contracting in September at a worse rate than analysts were expecting. Output dropped by 1.8 percent compared to the previous month. Analysts said in a Wall Street Journal poll that output would drop by 0.6 percent. However, the German economy minister preferred looking at the quarterly figure, which went up by 0.3 percent.
Preliminary figures also showed German exports contracting in September by 0.7 percent.
Source: CNBC
