* European shares open higher
* Eyes on U.S. presidential election
* STOXX 600 at one-week high
* BNP Paribas beats Q3 profit expectations
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BANKS, AUTOS DRIVE STOXX TO ONE-WEEK HIGH (0832 GMT)
European shares are off to a strong start as investors look
past lockdown risks to focus on the U.S. presidential election
that sees Biden ahead with a comfortable margin over Trump.
The STOXX 600 regional benchmark was trading a
one-week high in early trading, up over 1%, while all top
country benchmarks and sub-sectors were also in the black.
Trade sensitive autos and miners were among the best
performers, along with banks following a better than expected
update from France's largest lender BNP Paribas.
In the closely watched Apple suppliers universe, Cirrus
Logic shares rose overnight after results and Skyworks
talked up the 5G demand story, helping lift European
chip stocks such as ams and Dialog Semi.
(Danilo Masoni)
*****
ON OUR RADAR: ANOTHER BANK BEAT, COVID WINNERS & LOSERS
(0749 GMT)
With Biden comfortably leading in polls over Trump as the
election day in the U.S. is finally here, European shares look
set for a strong start today, even as fresh lockdown measures
pose risk to the region's economic recovery.
Besides the U.S. vote, whose results will start to come in
only well after markets close today and drag into early morning
tomorrow, there is still a number of updates to watch out for
any fresh indication about Europe Inc's profit outlook.
As we enter the final stretch of a solid reporting season
for banks, France's largest lender BNP Paribas also
didn't disappoint following better than expected results from
the likes of UBS and HSBC earlier in the season.
BNP reported that Q3 net income fell less than expected, as
bumper trading volumes continued to do their magic for the
sector.
Elsewhere it's mostly about COVID-19 winners and losers.
Sales at HelloFresh more than doubled in Q3, as
the German meal-kit delivery company saw an increase in
customers while existing ones ordered more frequently during the
lockdown. Its shares are up 3% in early trade.
AB Foods reported a 40% fall in full-year earnings,
with a COVID-19 related hit to profit at its Primark clothing
business outweighing increases at its sugar, grocery,
agriculture and ingredients divisions.
Hugo Boss said it was focused on driving the
global recovery of its business amid continuing uncertainty
about the coronavirus pandemic as it reported a return to
profitability in Q3.
Wizz Air said passenger numbers were 69% lower this
October, as the pandemic continues to crush demand for flying.
Dutch speciality chemicals company DSM meantime
beat analysts' expectations for Q3 core profit, as industrial
demand for its plastics, fibres and other materials recovered
from a coronavirus-driven slump.
EssilorLuxottica said Q3 sales showed signs of
recovery, but the maker of Oakley and Ray-Ban eyes the next few
months with 'prudent confidence' as a second coronavirus wave
threatens another heavy blow to results.
Eyes also on Adecco, whose shares rose 2.6% in
premarket trade after company reported a Q3 profit beat and said
saying hiring trend are gradually improving.
Shares in Bayer were down 2.5% in premarket trade
after the company took impairment charges of 9.25 bln euros and
said the costs of its settlement over claims its Roundup
weedkiller causes cancer would be higher as the burden from its
takeover of Monsanto mounts.
(Danilo Masoni)
*****
EUROPE'S RALLY SET TO CONTINUE ON U.S. ELECTION DAY (0635
GMT)
The pressure that sent European shares to five month lows
last week has lost any momentum with main benchmarks across the
region set to rally for a second straight session on the day
Americans will choose their next president.
It looks markets are turning somehow more confident in a
Biden victory against Trump, given the polls and expectations of
a high voting turnout that traditionally is favourable to the
Democrats.
A Democrat clean sweep is an extremely favourable scenario
for European equities as that would mean lower trade uncertainty
and greater fiscal stimulus.
Following gains in Asia overnight, Euro STOXX 50 futures
were last up 0.9% at a one-week high, while US futures were
trading up between 0.3% and 0.6%.
Of course results in battleground states like Florida where
polls indicate a tighter race remain crucial and investors are
getting ready for a bumpy ride as it could take several days
before the result becomes clear.
(Danilo Masoni)
*****
AB Foods (ABF)