European stock markets showed a mixed performance on Monday as investors prepared for the US presidential election and awaited the Bank of England’s decision on interest rates later in the week.
Anticipation of Key Political Events
Tuesday’s election in the US is expected to influence the global economy and geopolitical landscape for the next four years. In financial markets, US Treasury bonds fell by eight basis points to 4.31% following a poll indicating that Vice President Kamala Harris is leading in Iowa, a critical state for the elections.
Meanwhile, Deutsche Bank economists predict that the Bank of England will reduce interest rates by a quarter point for the second time this cycle, bringing UK rates down to 4.75%.
Stock Market Movements
In early trading, London’s FTSE 100 index rose by 0.3%. However, Germany’s DAX index dipped by 0.1%, and the CAC 40 in Paris also fell by 0.1%. The pan-European STOXX 600 index remained relatively unchanged, reflecting the cautious sentiment among investors.
In the US, Wall Street is expected to open with mixed results. S&P 500 futures and Nasdaq futures were in positive territory, while Dow futures showed a slight decline.
Currency and Company Highlights
The British pound gained 0.4% against the US dollar, trading at 1.2973.
This week, several key companies will report their earnings, including Berkshire Hathaway, Super Micro, Novo Nordisk, Vistry, and Marks & Spencer.
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