European stocks reach a week high as investors await the outcome of the US elections

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Tuesday, November 03, 2020 - 18:45
Point Trader Group
European stocks reach a week high as investors await the outcome of the US elections

Banking and auto stocks lifted the benchmark European stock index to a week high on Tuesday, while investors predicted a big victory for Democrat Joe Biden in the US presidential election would lead to more economic stimulus.

The pan-European STOXX 600 index closed up 2.3 percent, its best daily performance since mid-June. The Frankfurt, Paris and London stock exchanges saw equal gains.

Stock exchanges around the world have drawn strength from indications that Biden is enjoying a strong and steady lead in local polls over Republican President Donald Trump, although the lead in the race is narrow in a number of swing states.

Biden's victory is considered supportive of European stocks in the short term due to expectations that they will lead to a bigger stimulus package and better US trade relations.

Banking stocks led gains among European sectors, with French bank BNP Paribas jumping 6.1 percent after a currency rally and commodity trading helped it beat quarterly earnings expectations.


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