RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2020-11-03 13:10:00

EUROPEAN SHARES UP

EUROPEAN SHARES UP

REUTERS - NOVEMBER 3, 2020 - European stock markets rose in early trading on Tuesday as investors bet on a clear win for Joe Biden as the United States votes in its most polarised presidential election in living memory. 

Steady earnings from French bank BNP Paribas BNPP.PA lifted its shares by 6.5%, adding to a sense that the banking sector was holding up relatively well to an economic pounding from the COVID-19 crisis. 

But a 40% fall in full-year earnings at Associated British Foods ABF.L due to a profit plunge in its Primark clothing business was a reminder of how the pandemic is wreaking havoc with corporate balance sheets. ABF shares fell 1.7%. 

U.S. President Donald Trump and Democratic rival Biden made a last-ditch push for votes in battleground states on Monday as their campaigns prepared for post-election legal disputes that could delay a clear outcome. 

“Markets are pricing for a Biden win, certainly a clear outcome, and they want a clear and uncontested outcome,” said Michael Hewson, chief market analyst at CMC Markets.

A shock Trump win, a contested result, or just a divided outcome could all trigger corrections in markets, he said.

“Control of the Senate is crucial for any ‘blue wave’ scenario to materialise, otherwise divided government continues and fiscal stimulus expectations will need to be scaled back,” added Alvin Tan, Asia forex strategist at RBC Capital Markets.

The pan-European STOXX 600 index .STOXX rose 1.3% on a second day of robust gains, having slumped to a five-month low last week. Growth-sensitive cyclical sectors such as oil and gas.SXEP, miners .SXPP and banks .SX7P once again led therally - all rising more than 2% No major European economic data is due on Tuesday, with only a smattering of earnings to steer investors. BNP bank was buoyed by a surge in currency and commodity trading to beat third quarter profit expectations.

BINARY MARKET MOOD

Analysts said that while the mood was more upbeat on Tuesday, it remained febrile as European countries introduced tougher lockdown restrictions to fight a pandemic that was set to hit the economy further.

Australian’s central bank became the latest to take action to shore up the coronavirus-hit economy, trimming interest rates to near zero on Tuesday and ramping up its bond-buying plans.

Investors are also waiting on Federal Reserve and Bank of England meetings this week that are also expected to bring more support.

“The problem with markets is that they are very binary. One day everything is hunky dory and the next day it’s the depths of despair and so you have to tread that tightrope between the two that creates volatility,” CMC Markets’ Hewson said.

The global tone was helped by gains overnight on a Wall Street underpinned by U.S. manufacturing activity accelerating more than expected in October, and Asian equity markets and U.S. futures ESc1 rallying.

The dollar and gold were little changed as currency and bullion traders bunkered down ahead of the U.S. election.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS had added 1.4% overnight. The gauge is less than 1% shy of a 2-1/2 year high struck in mid-October and up over 5% this year, driven by a 37% rebound from China's markets since March.

Graphic: 2020 asset performance:

 

2020 asset performance

Strategists at Blackrock Investment Institute said polls were suggesting a greater likelihood of a Democratic sweep in the election.

“We are starting to incorporate themes we believe would outperform in that event, moving toward a more pro-risk stance overall despite last week’s market pullback,” the strategists said in a report.

South Korea's main index .KSII advanced 1.7% and Hong Kong's index .HSI sprinted 2.2% higher.

The MSCI China index hit a 23-year high after Chinese factory activity expanded the fastest in a decade.

Japanese markets were closed for a holiday.

The U.S. dollar hovered just below a one-month high. Against a basket of currencies =USD it held at 93.996. The safe-harbour yen JPY= was steady at 104.72 yen per dollar.[FRX/]

The Aussie [AUD=D3] fell 0.2% and Australia's ASX 200 .AXJO ended 2% higher as the central bank trimmed interest rates to near zero and expanded its bond-buying programme, as expected.

Oil prices steadied after two weeks of weakness, with Brent futures LCOc1 down 0.2% at $38.89 a barrel, but hanging on to most of an overnight bounce. [O/R]

Gold XAU= eased 0.1% to $1,892.5 an ounce, while the dollar index =USD held ground at 94.027. 

Graphic: World FX rates in 2020:

 

World FX rates in 2020:

-----


Earlier:

EUROPEAN SHARES UP
2020, October, 26, 13:40:00
EUROPEAN DECARBONIZATION'S BORDER
The debate over carbon border measures flows from the EU's policy of imposing a price on carbon emissions in the EU which is not replicated in much of the rest of the world, with some exceptions, presenting a threat to European carbon-intensive industry's competitiveness.
EUROPEAN SHARES UP
2020, October, 23, 15:45:00
EUROPEAN SHARES UP
The pan-European STOXX 600 index .STOXX advanced 0.9%,
EUROPEAN SHARES UP
2020, October, 21, 16:40:00
EUROPEAN ECONOMY WILL DOWN BY 7%
The European economy is projected to contract by 7 percent in 2020 and rebound by 4.7 percent in 2021.
EUROPEAN SHARES UP
2020, October, 19, 14:25:00
EUROPE RENEWABLE ENERGY 23%
The EU-27 is projected to reach a share of renewable energy between 22.8% and 23.1% in gross final energy consumption in 2020.
EUROPEAN SHARES UP
2020, October, 16, 12:45:00
EUROPE'S SHARES UP
The pan-European STOXX 600 .STOXX rose 0.8% about an hour after the open.
EUROPEAN SHARES UP
2020, October, 15, 13:25:00
EUROPE'S SHARES DOWN
The pan-European STOXX 600 index .STOXX was down 1.7%
EUROPEAN SHARES UP
2020, October, 8, 12:25:00
EUROPE'S INDEXES UP
The pan-European STOXX 600 index .STOXX rose 0.4%
All Publications »
Tags: EUROPE, STOCKS, SHARES, INDEXES, BONDS
Chronicle:
EUROPEAN SHARES UP
2021, December, 7, 17:39:00
TRANSPORTATION OIL AND GAS CONGRESS, 21th-22th of February, 2022
Business and Technical Views On The Market At The Transportation Oil and Gas Congress 2022
EUROPEAN SHARES UP
2021, December, 7, 17:38:00
LEARN THE LATEST GLOBAL LNG TRENDS WITH LNGCON 2022
The next edition of the International LNG Congress (LNGCON 2022) takes place in Dusseldorf, Germany on March 28-30, 2022. Covering the whole LNG value chain, the Congress brings together decision makers of the industry to tackle the most relevant issues such as the role of LNG in the transition towards zero-carbon shipping.
EUROPEAN SHARES UP
2021, December, 7, 17:37:00
ENERGY WEEK CENTRAL ASIA & MONGOLIA 2022
To learn more, join the upcoming high-level international investment conference Energy Week Central Asia & Mongolia 2022, which will take place on 26-28th April in Tashkent.
EUROPEAN SHARES UP
2021, December, 7, 17:36:00
WORLD GAS CONFERENCE 2022
The 28th World Gas Conference (WGC 2022) takes place in Daegu, the energy city of Korea in May 2022.
EUROPEAN SHARES UP
2021, December, 7, 17:35:00
RENEWABLE ELECTRICITY FOR INDIA 8 GW
Power Grid Corporation of India Ltd (PGCIL), through its subsidiary Central Transmission Utility of India (CTU), had earlier filed a petition to execute power transmission infrastructures for up to 18.5 GW of renewables energy zones in southern India
EUROPEAN SHARES UP
2021, December, 7, 17:30:00
DUTCH RENEWABLES 5.2 GW
The proposals include 5,170 MW of renewable projects, of which 4,132 MW are solar PV projects, 243 MW geothermal projects and 151 MW biomass projects.
EUROPEAN SHARES UP
2021, December, 7, 17:25:00
WIND FOR SWEDEN
Sweden has currently around 200 MW of operational offshore wind capacity, on top of 9.8 GW of onshore wind capacity
All Publications »