Europe open: Shares edge ahead as Sunak set to be UK PM
European stocks edged higher on Tuesday morning as investors eyed the latest dump of corporate earnings and the formal appointment of Rishi Sunak as the third British prime minister in seven weeks.
The pan-European Stoxx 600 index was up 0.36% in early deals. With most major bourses up with exception of Britain's FTSE 100, which was down slightly.
After losing the leadership race to Liz Truss two months ago after the resignation of the disgraced Boris Johnson, 42-year-old former finance minister Sunak is now set to inherit a party and economy in crisis.
Sterling gained on news of Sunak's appointment and government bond yields fell below 4%.
Investors will be eyeing Finance Minister Jeremy Hunt's budget on October 31 to see how he plans to plug a £40bn black hole in Britain's public finances exacerbated by Truss’s disastrous package of unfunded tax cuts.
In equity news, HSBC shares fell as the bank reported a fall in third quarter earnings. Rival UBS gained after reporting a double-digit profit declines. Both institutions beat market expectations.
SAP gained despite earnings falling short of forecasts, while Softcat was up after posting higher earnings.
Online beauty products seller THG surged after backing its full year outlook as third-quarter revenues rose and it signed a new banking facility.
Reporting by Frank Prenesti for Sharecast.com