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 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 COVID19 crisis.
But a 40 fall in fullyear earnings at Associated British Foods 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 lastditch push for votes in battleground states on Monday as their campaigns prepared for postelection 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 panEuropean STOXX 600 index rose 1.3 on a second day of robust gains, having slumped to a fivemonth low last week. Growthsensitive…