Europe open: Stocks little changed ahead of US election

European stocks were little changed in early trade as investors sat on their hands ahead of the US presidential election.

At 0855 GMT, the benchmark Stoxx Europe 600 index was up 0.2%, Germany’s DAX was 0.1% firmer and France’s CAC 40 was flat.

Meanwhile, oil prices edged higher, with West Texas Intermediate up 0.3% to $45.00 a barrel and Brent crude up 0.5% to $46.39.

CMC Markets’ Michael Hewson said: “Whichever way the result goes there is one inescapable fact that investors surely cannot ignore. Even if Donald Trump loses, the political narrative in the US has changed irrevocably and probably not for the better, as any new President will have to preside over a nation more divided than ever, and that could make any new government policies, whoever is elected, much less business and free trade friendly.

“Of more importance of who becomes President will be the makeup of the respective houses and if the Republicans maintain their blocking majorities then Mrs Clinton could well find out that her ability to do anything will be constrained in the same way President Obama’s has been over the past few years.”

In corporate news, Marks & Spencer gained ground. The retailer held its interim dividend as first-half profits fell almost 19%, with new chief executive Steve Rowe announcing a £350m investment plan to close 113 stores in the UK and overseas markets to try and return the retailer to profitable growth.

Credit Agricole rallied after it said net profit in the third quarter doubled, while Henkel advanced as its third-quarter profit beat analysts’ expectations.

Deutsche Post was also in the black after it posted a jump in third-quarter profit and said it was on track to meet its full-year targets.

Direct Line Group edged higher after it said gross written premiums for ongoing operations rose 4.2% in the nine months to the end of September with continued growth in Motor own brands, up 9.7%.

Primark owner Associated British Foods advanced as it reported a rise in full-year revenue and profit.

Aveva was little changed after the FTSE 250 engineering software provider said it swung a to a profit in the first half of the year as revenue rose despite “continued tough trading conditions".

On the downside, steel manufacturer ArcelorMittal slumped as it cautioned that a sharp rise in coal prices would hit earnings in the fourth quarter.

FTSE 100 tobacco company Imperial Brands fell after it reported a drop in profit for the year to end of September, but said revenue rose and upped its dividend by 10%.

Data from Destatis did little to lift the mood on Tuesday, as it showed total German industrial output dropped 1.8% on the month in September, with manufacturing output down 1.7% and construction output down 1.5%. Analysts had been expecting a smaller drop of 0.6% in total output.

Meanwhile, the adjusted trade surplus in Germany came in lower than expected at €21.3bn.

Earlier, figures released by the General Administration of Customs earlier showed Chinese exports fell 7.3% in October from a year earlier following a 10% drop in September. Meanwhile, imports were down 1.4% compared to a 1.9% drop in September. Analysts had been expecting a 6% fall in exports and a 1% decline in imports.