EUROPEAN shares dipped on Monday as losses in technology stocks offset gains in banks and oil shares, and the focus was on the US presidential election.
The pan-European Stoxx 600 closed down 0.3 per cent, with tech shares dropping 1.1 per cent to lead sectoral declines.
Banks rose 0.7 per cent, while energy stocks gained 0.4 per cent as a decision by Opec+ to delay plans to increase output pushed oil prices up by over 2 per cent.
All eyes are turned towards Tuesday’s US election, with opinion polls too close to call a clear winner between Republican candidate Donald Trump and Democrat Kamala Harris.
“A Trump win will probably bode for further relative underperformance of the European market versus the US market,” said Sebastiano Chiodino, head of liability driven investments at Generali Asset Management.
Trump’s policies on immigration, tax and tariffs are generally viewed as inflationary, which could prompt higher US interest rates.
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“On the opposite end, a Harris win will go more in continuity and inevitably some unwinding of the Trump trade which can trigger some catch up of European equity vs the US.”
The pan-European benchmark is up by nearly 7 per cent this year compared to a near 20 per cent gain for the S&P 500.
Another keenly awaited event this week is the US Federal Reserve’s interest rate decision on Thursday, with markets all but convinced it will opt for a 25 basis points cut.
The Bank of England is also expected to ease its policy by 25 bps this week, while rate decisions will also be announced by Norway and Sweden.
Data indicated that euro zone manufacturing showed some signs of stabilisation in October. Activity contracted for a 28th month, but at a reduced pace.
STMicroelectronics, Europe’s largest chipmaker by revenue, shed about 3 per cent after Morgan Stanley downgraded the stock to “underweight” from “equal weight”.
Schneider Electric fell 2.3 per cent after the French industrials giant said it has ousted CEO Peter Herweck with immediate effect.
Volvo Cars gained 5 per cent after the Swedish automaker’s sales rose 3 per cent year-on-year in October.
UK’s Burberry jumped 4.8 per cent after a report over the weekend said that Italy’s Moncler could be considering a bid for the luxury firm. Moncler edged 2 per cent lower.
Swedish property group SBB dropped about 23 per cent with analysts pointing to a report in a Swedish business daily that encouraged investors to sell stakes in the company. REUTERS
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Publish date : 2024-11-04 14:16:00
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