MW: Europe stocks rise with all eyes on U.S. election
By Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Major European stock markets moved broadly higher Tuesday, with investors focusing on the outcome of the U.S. presidential race as Election Day across the Atlantic got under way.
The Stoxx Europe 600 index XX:SXXP +0.48% rose 0.5% to 274.60, with financial shares leading the positive move.
Shares of ARM Holdings PLC UK:ARM +2.73% posted one of the biggest gains in the index, up 3.5%, after the chip maker said it has joined a consortium that’s buying rights to MIPS Technologies Inc.’s MIPS +2.03% patent portfolio. See: ARM consortium to buy rights to MIP patents.
Also: Imagination Tech to buy MIPS Technologies for $60 milliion.
UBS AG CH:UBSN +1.53% UBS +0.66% added 1.9% after Barclays lifted the investment bank’s shares to overweight from underweight, citing strong restructuring efforts and major strategy changes for the Swiss bank.
From polls to fiscal cliff
The focus for the trading day was, however, more on what the U.S. political future holds, as Americans prepared to vote in an ever-so-tight presidential race between President Barack Obama and Republican challenger Mitt Romney.
“Whoever wins the race for the White House, chances are that the next president will have to work with the opposing party on resolving the fiscal cliff and putting the U.S. on a sustainable fiscal path. This means more policy gridlock and a messy process toward an eventual fiscal deal,” they said.
U.S. stock futures pointed to a higher open for Wall Street. See: U.S. stock futures edge higher on Election Day
From the European news flow, data illustrated the euro-zone downturn in the beginning of fourth quarter. The final Markit composite purchasing managers’ index printed at 45.7 in October, down from an earlier estimate of 45.8.
Meanwhile, the U.K.’s Office for National Statistics said manufacturing production fell 1.7% in September.
Movers
Among the other notable movers in Tuesday’s trades in Europe, Adecco SA shares CH:ADEN +3.68% picked up 3.4% after the staffing firm reported third-quarter earnings in line with expectations. See: Adecco: Outlook uncertain, 3Q meets forecasts.
Shares of Hannover Re AG DE:HNR1 +5.23% jumped 5.3%. The German reinsurance company posted a 63% increase in third-quarter profit and said it was too early to give a reliable forecast for expected claims from Hurricane Sandy. See: Hannover Re Q3 net up; year net to exceed €800 milllion.
Also in Frankfurt, shares of BMW AG DE:BMW -0.07% inched 0.5% higher, after the car maker reported a 16% rise in third-quarter profit. See: BMW profit up despite costs, weak economy
The German DAX 30 index DX:DAX +0.55% traded 0.7% higher at 7,377.49, with shares of Deutsche Bank AG DE:DBK +1.23% DB -0.55% up 1.5%.
In London, shares of Marks & Spencer Group PLC UK:MKS +1.34% gained 1.3%, as the retailer said its clothing division is on track to reverse months of underperformance. See: M&S profit slides.
G4S PLC shares UK:GFS +1.76% picked up 2%, after the security company said revenue for the nine months to Sept. 30 rose 9.2% including the London Olympics contract. See: G4S nine-month revenue rises.
The FTSE 100 index UK:UKX +0.58% added 0.6% to 5,870.82.
