European Markets Edge Higher As Investors Eye U.S. Election Outcome

Jibran Munaf
Jibran Munaf November 6, 2024

Image: Jonathan Ernst/Scott Olson/Getty Images

European stocks closed with slight gains Tuesday, as global markets remained cautious ahead of the U.S. presidential election. The pan-European Stoxx 600 index rose marginally by 0.06%, with sectors showing mixed performance.

Industrial Stocks Boost While Autos Decline
Industrial stocks led the gains, rising 1.2%, while the autos sector struggled, dropping 1.82% amid ongoing economic uncertainties. Despite the modest rise, investors were focused on broader global events that could shift economic policies and market trends.

Market Eyes on U.S. Congress and Federal Reserve Decisions
As markets await election results, attention is focused on potential changes in Congress, with significant spending and tax policy shifts possible depending on which party gains control. The Federal Reserve’s rate decision on Thursday is also in focus. Wall Street expects a 99% chance of a quarter-point rate cut after the Fed’s September reduction, according to CME Group’s FedWatch Tool.

U.S. stocks showed slight gains Tuesday as investors awaited election results, while Asia-Pacific markets remained mixed overnight. With the election outcome and Federal Reserve’s decision approaching, European markets are expected to remain cautious amid global uncertainty.

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