Europe midday: Markets flat ahead of US elections as earnings disappoint

European stocks were flat by Tuesday lunchtime, with markets across the continent rangebound as investors brace for news from the US presidential election later on, while a barrage of disappointing corporate earnings weighed on sentiment.

By 1246 CET, the Stoxx 600 was flat at 509.23, having swung between gains and losses for most of the morning session, with all major European benchmarks trading flat or 0.1% higher.

All eyes were firmly fixed on Washington DC, with Americans set to pick between former president Donald Trump and current vice president Kamala Harris in the race for the White House.

However, results are unlikely to be announced immediately – given individual states' own ballot-counting processes – and pundits are warning that it could be several days before a clear winner is declared.

"Today sees the US electorate head to the polls, in a hotly contested election that has huge implications for global markets over the coming years. Despite a brief spike in support for Harris off the back of the weekend polls, we have seen the betting markets push back in the direction of a Trump victory since," said Joshua Mahony, chief market analyst at IG.

In economic news, activity in China’s services sector picked up more than expected in October, according to a survey released on Tuesday. The Caixin services purchasing managers’ index rose to 52.0 from 50.3 in September, coming in above consensus expectations of 50.5 and hitting a three-month high.

Meanwhile, the S&P Global UK services PMI fell to an 11-month low of 52.0 last month, down from 52.4 in September, with respondents citing geopolitical tensions and heightened uncertainty ahead of the Autumn Budget as reasons for delayed spending decisions.

Market movers

Danish medical devices group Ambu was a heavy faller, dropping 10% after disappointing the market with its annual report in which it guided to 10-13% organic growth for the year ahead, slightly below the 13.8% rate achieved in the year just gone.

Vestas also dropped 10% in Copenhagen after the wind turbine maker underwhelmed with its interim results, in which it warned that full-year group margins would be at the lower end of the guidance range.

Swiss recruitment firm Adecco saw shares drop 11% to the lowest in nearly three decades after a 21% drop in adjusted EBITA for the third-quarter, much lower than analysts were expecting.

In London, Schroders fell 13% despite reporting a record high in assets under management in the third quarter, as large outflows took the shine off the news.

German fashion giant Hugo Boss was also 5% lower after reporting that third-quarter profits fell due to ongoing struggles in the luxury-goods sector.