European stocks rise, following US lead as Trump wins presidential election
European stock markets rose Wednesday, following the lead from Wall Street, as Republican candidate Donald Trump won the US presidential election, opening the path for potentially inflationary policies.
At 07:05 ET (12:05 GMT), the DAX index in Germany traded 0.5% higher, the CAC 40 in France rose 0.9% and the FTSE 100 in the U.K. gained 1.1%. Trump declares election victory
Trump is heading back to the White House as the 47th president of the United States, according to the Associated Press and other major news networks.
The AP made the decision to call the race for Trump after he won the key battleground state of Wisconsin, the news agency said. Trump had also emerged victorious in a host of other crucial swing states, including Pennsylvania, Georgia and North Carolina.
Trump had previously declared victory earlier on Wednesday, saying the results give him a "powerful mandate" as he returns to the White House for a second four-year term.
Republicans are also seen having taken a majority in the Senate, raising the possibility of a Republican sweep in the 2024 elections.
This would provide Trump with a platform to enact his agenda of tax cuts which could boost Corporate America, as seen by the sharp jump in the futures contracts attached to the main Wall Street indices, even if steep tariffs and a potential global trade war under his presidency could impact European companies negatively. BMW's Q3 profit slumps
Back in Europe, data released earlier Wednesday showed that eurozone business activity held steady last month, a small improvement from September's modest decline, supported by an expansion in the bloc's dominant services industry.
The composite Purchasing Managers' Index for the currency union, compiled by S&P Global, rose to 50.0 in October from September's 49.6.
But most eyes were on more quarterly earnings, with the season in full swing.
BMW (ETR:BMWG ) stock fell almost 7% after the German auto giant reported a substantial drop in its quarterly third-quarter profit, missing expectations because of slumping China sales and brake problems.
Novo Nordisk (NYSE:NVO ) stock rose 6% after the drugmaker, which manufactures weight-loss and diabetes drugs, narrowed its full-year sales and profit guidance range, while its CEO said it is lifting curbs on prescriptions of its weight-loss drug Wegovy in the United States and is increasing supply in that market.
Marks & Spencer (OTC:MAKSY ) stock rose 4% after the British retailer reported a better-than-expected 17.2% rise in first-half profit, and forecast "further progress" for the full year, adding to evidence its latest turnaround plan is working.
Puma (OTC:PMMAF ) stock fell almost 6% after the German sportswear maker reported a 5% rise in currency-adjusted sales for the third quarter, but this was below expectations as negative effects from foreign exchange rates continued to weigh.
Credit Agricole (OTC:CRARY ) stock fell 5% after the French lender reported a drop in third quarter net profit given weakness at some of its retail businesses. Crude prices slip lower after API release
Oil prices fell Wednesday after industry data pointed to a rise in US crude stockpiles, while the dollar surged on Trump’s election progress.
By 07:05 ET, the Brent contract slipped 1.3% to $74.58 per barrel, while U.S. crude futures (WTI) traded 1.3% lower at $71.08 per barrel.
Data from the American Petroleum Institute data, released on Tuesday, showed that U.S. crude inventories rose by 3.13 million barrels last week, higher than the expected 1.1 million barrels.
The official inventory numbers are due later on Wednesday, but if the API release is confirmed it would spur some concerns that U.S. fuel demand was cooling, especially as the winter season approaches.
A stronger U.S. dollar makes commodities denominated in the greenback, such as oil, more expensive for holders of other currencies, in turn curbing demand.
Source: Investing.com
