European stocks slightly up on China data at early trade

Europe stock markets were slightly higher during morning trade Tuesday with investors focused on another batch of corporate earnings as well digesting some positive economic data from China.

The pan-European Stoxx 600 was higher with all major bourses in positive territory. Basic resources led the gains after stronger-than-expected twin PMI surveys from China gave the sector a boost of confidence.

Shell, BP earnings

Meanwhile, the oil and gas sector was up 0.87 percent in early morning trade. Shell, the multinational oil firm, saw its shares up by 3.8 percent, after reporting better-than-expected earnings for its third quarter on Tuesday.

However, BP shares fell 1.2 percent, despite reporting earnings that were above the consensus expectations. The oil major saw its net income nearly halve from the same period last year.

Oil, U.S. election, BoJ

The political instability regarding the U.S. presidential election remains a concern among investors with only one week to go until voters head to polling stations. A NBC News survey showed that the 6-point lead of Hillary Clinton over Donald Trump seemed unchanged since last week, despite the FBI’s announcement that it would be investigating additional emails regarding Clinton’s use of a private email server. Donald Trump said Monday that a potential probe into Clinton’s emails would shadow her mandate as president.

Elsewhere, both the Reserve Bank of Australia and the Bank of Japan decided to keep their policies unchanged Tuesday. Members of the Federal Reserve are also due to start of a two-day meeting on Tuesday, with a rate decision due Wednesday.

Governor Mark Carney of the Bank of England announced Monday he would not step down until 2019 – one more year than previously expected – to help Britain offset the uncertainty regarding Brexit. Prime Minister Theresa May is chairing a weekly cabinet meeting following reports of divisions among ministers on Brexit negotiations.

Tuesday’s calendar will see the publication of U.K. October PMI figures.

Source: CNBC