Europe open: Shares start in upbeat mood as US goes to the polls

European stocks continued their positive trend from Monday after gains on Wall Street and in Asia overnight as the US prepared for its most critical election in decades.

The pan-European Stoxx 600 index was up 1.2% with all major bourses in the green. Early polling gave Democrat challenger Joe Biden a slight lead over incumbent Donald Trump, although investors were still wary the US President would disrupt proceedings and delay the result.

Dow Jones futures were up more than 320 points after a 423-point gain for the index on Monday.

In equity news house builders were among the gainers after Crest Nicholson said full-year profit was set to be ahead of market expectations thanks to positive trading since the end of the Spring lockdown, as it announced the reinstatement of its dividend.

Crest said 2020 adjusted pre-tax profit will be "significantly" ahead of consensus of £37.9m and at the upper end of its previously-guided range of between £35m and £45m. The company hailed a good sales performance through the second half, with current sales rates remaining robust and slightly ahead of pre-lockdown levels.

Barratt Developments and Taylor Wimpey were also up on the news.

Bayer shares were lower after the company revealed it had set aside another $750m to cover cancer claims against its Roundup weedkiller, bringing the total up to $2bn, as it posted a third-quarter net loss of €2.74bn.

Associated British Foods shares fell after the company reported a 40% fall in earnings as the Covid-19 lockdown hammered sales at its Primark retail chain.

Full year revenue came in at £13.9bn a decline of 12%, and slightly below expectations, while adjusted operating profits fell back to just over £1bn, a fall of 31%. Broken down into their respective segments the retail division accounted for the biggest hit, as profits fell to £362m from £969m.

Grocery and sugar saw big increases in profits, with grocery seeing an increase to £437m from £381m, while the sugar business saw profits rise to £100m from £30m. Management expects Primark full year sales and profits to be higher for next year, contingent on there being no further Covid lockdowns.

Shares in Banque Paribas rose as the French bank reported third quarter net income of €1.89bn, driven by outperformance in its investment banking division, which saw trading revenue rise 36% to €1.25bn. The bank also set aside €1.24bn in respect of non-performing loans.