European stocks exhibited indecision on Monday, influenced by investor apprehension as the U.S. presidential election and a crucial Federal Reserve interest rate announcement loomed in the week ahead.
As the U.S. election day approaches, with just one day remaining, more than 75 million early votes have been recorded, according to estimates from the University of Florida. The election outcome will shape whether the incoming president will govern with the support of Congress or face opposition.
A divided control between the U.S. House of Representatives and Senate could likely perpetuate the current political landscape.
The Federal Reserve's interest rate decision will be revealed on Thursday, accompanied by a press conference hosted by Chair Jerome Powell. Market consensus anticipates a 25 basis point rate cut from the U.S. central bank, following a significant 50 basis point cut in September, as it grapples with economic inconsistencies.
Similarly, the Bank of England is projected to reduce interest rates by 25 basis points during its Thursday meeting.
In stock movements, the pan-European STOXX 600 edged slightly higher to 511.27, building on a 1.1 percent rise from Friday. However, the German DAX slipped by 0.1 percent, France’s CAC 40 remained largely steady with a slight upward trend, and the U.K.’s FTSE 100 increased by 0.5 percent.
Among individual stocks, chipmaker STMicroelectronics fell by 1.6 percent following a downgrade from Morgan Stanley, adjusting its rating from "equal weight" to "underweight." Conversely, the Italian energy firm Eni climbed 0.6 percent after completing the divestiture of two offshore assets.
Construction company Skanska AB posted a 1.1 percent gain subsequent to securing a contract to construct two office buildings on South Molton Street in London’s West End.
Boosted by rising commodity prices, resource-based stocks in London made gains, with miners Anglo American, Antofagasta, and Glencore advancing between 0.6 percent and 1.2 percent.
In the energy sector, BP Plc rose by 1.3 percent, while Shell gained 1.2 percent, benefiting from a more than $1 increase in oil prices after OPEC+ decided to postpone plans to boost output by a month.
Burberry surged nearly 5 percent on speculation that Italy’s Moncler might be considering an acquisition bid for the luxury brand.
Schneider Electric saw its shares decline by approximately 1 percent after the French industrial leader abruptly replaced CEO Peter Herweck, citing concerns over his management of the company's strategic direction.
