European Stocks Set For Cautious Start As US Election Looms 

European-Stocks

European stocks are likely to open higher on Tuesday, although gains are likely to remain modest ahead of the U.S. presidential election.

Roughly 120 million Americans will cast their votes today to determine whether Republican Donald Trump or Democrat Hillary Clinton will become the 45th President of the United States of America. Results from the election should mostly be known Tuesday night by around 11PM ET.

U.S. stock futures are drifting lower, a day after stocks posted their biggest gain in eight months boosted by the enhanced hopes for a Clinton victory. The Dow rallied 2.1 percent overnight and the S&P 500 climbed 2.2 percent after nine straight sessions of declines, while the tech-heavy Nasdaq jumped 2.4 percent.

Oil prices held stable in Asian deals after posting strong gains in the previous session, while gold traded flat after losing almost 2 percent on Monday. The U.S. dollar traded flat versus the Mexican peso after losing 2.3 percent on Monday to post its biggest single-day drop in six weeks.

In economic releases, U.K. retail sales spiked 1.7 percent from a year earlier in October as shoppers stepped up spending despite concerns over the prospect of Brexit and the declining pound, figures from the British Retail Consortium showed. That topped expectations for a 0.6 percent gain following the 0.4 percent increase in September.

Another report on jobs compiled by the Recruitment and Employment Confederation and IHS Markit showed that permanent job placements in the U.K. grew at the fastest pace in eight months in October.

Investors await industrial production data from Germany and the U.K. later in the day for further direction.

The pan-European Stoxx Europe 600 index rallied 1.5 percent on Monday after the FBI took no action against Clinton over newly uncovered mails and HSBC posted a surprise jump in adjusted profit.

The German DAX and France’s CAC 40 index both jumped 1.9 percent while the U.K.’s FTSE 100 added 1.7 percent.

Source: Nasdaq – European Shares Set For Cautious Start As US Election Looms

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