European shares dip as tech losses offset bank, oil gains

By Shashwat Chauhan

(Reuters) -European shares dipped on Monday as losses in technology stocks offset gains in banks and oil shares, and the focus was on the U.S. presidential election.

The pan-European STOXX 600 closed down 0.3%, with tech shares dropping 1.1% to lead sectoral declines.

Banks rose 0.7%, while energy stocks gained 0.4% as a decision by OPEC+ to delay plans to increase output pushed oil prices up by over 2%. [O/R]

All eyes are turned towards Tuesday's U.S. 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 U.S. market," said Sebastiano Chiodino, head of liability driven investments at Generali (BIT:GASI ) Asset Management.

Trump's policies on immigration, tax and tariffs are generally viewed as inflationary, which could prompt higher U.S. interest rates.

"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 U.S."

The pan-European benchmark is up by nearly 7% this year compared to a near 20% gain for the S&P 500 .

Another keenly awaited event this week is the U.S. 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% after Morgan Stanley downgraded the stock to "underweight" from "equal weight".

Schneider Electric (EPA:SCHN ) fell 2.3% after the French industrials giant said it has ousted CEO Peter Herweck with immediate effect.

Volvo (OTC:VLVLY ) Cars gained 5% after the Swedish automaker's sales rose 3% year-on-year in October.



UK's Burberry jumped 4.8% after a report over the weekend said that Italy's Moncler could be considering a bid for the luxury firm. Moncler edged 2% lower.

Swedish property group SBB dropped about 23% with analysts pointing to a report in a Swedish business daily that encouraged investors to sell stakes in the company.

Source: Investing.com

Publicații recente
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Analiza pieței Cum va afecta raportul NFP de mâine cursul de schimb al dolarului american?