European and US stocks fell flat on Monday as investors treaded carefully before the US presidential election that will impact the world economy, with a US Federal Reserve interest rate cut also expected later in the week.
In the US presidential race, Democratic candidate Kamala Harris and Republican candidate Donald Trump remain virtually tied in opinion polls ahead of Tuesday’s vote. It might not be clear who has won for days after voting ends.
Mr Trump’s policies on immigration, tax cuts and tariffs may put upward pressure on inflation, bond yields and the dollar, analysts believe, while Harris is seen as the continuity candidate.
“We are too evenly divided and polarised to suggest a red sweep,” Frank Luntz, Republican consultant and pollster, told the Reuters Global Markets Forum. “The Senate looks like it will swing Republican, but the presidency and the house are simply too close to call,” he said.
MSCI’s gauge of stocks across the globe added 0.3 per cent , while the dollar index, which measures the US currency against a basket of currencies, eased 0.29 per cent to 103.63.
Dublin
Iseq heavyweight Ryanair traded flat (remaining at €18) despite a court ruling pausing the effects of a Dublin Airport passenger cap that was due to imminently affect airlines’ access to take-off and landing slots over the summer 2025 period.
The airline along with rival Aer Lingus last week brought an urgent application over the Irish Aviation Authority’s (IAA’s) decision to limit passenger numbers to 25.2 million for the period.
Most of the other big players on the exchange AIB, Kingspan, Kerry and Glanbia ended the session in the red as investors awaited bigger news later in the week. Permanent TSB and hotel group Dalata were among the few shares to advance.
Europe
European stocks retreated on Monday as caution over the imminent US presidential election weighed on the regional benchmark, though losses were kept in check by buoyant banking and energy shares.
M&A speculation, especially in the luxury goods sector, sparked some sizable moves. EssilorLuxottica popped higher on renewed chatter that Meta Platforms is weighing a stake in the eyewear manufacturer.
Elsewhere, Schneider Electric shares slipped after the French electric equipment maker named Olivier Blum as chief executive officer, just days after the group was among companies fined by French antitrust regulators over a price-fixing pact.
European equities have drifted lower over the past month or so as investors brace for multiple risk events, including this week’s US presidential election, as well as interest rate decisions from both the Federal Reserve and the Bank of England.
London
The UK’s benchmark FTSE 100 rose marginally on Monday, helped by energy shares, while cautious investors braced for the U.S. presidential election and a potential interest rate cut by the Bank of England (BoE) later this week.
The blue-chip FTSE 100 was up 0.1 per cent at 8,184.24 points, while the mid-cap FTSE 250 dipped 0.1 per cent.
The heavyweight oil and gas sector rose 0.7 per cent as oil prices jumped more than 2 per cent after a decision by OPEC+ to delay increasing output by a month.
The personal goods sector, however, led sectoral gains, driven by an 4.8 per cent jump in Burberry after a report that Italy’s Moncler was considering a bid for the luxury retailer.
The banking sector rose 1.1 per cent, supported by Natwest Group that advanced 2.6 per cent to a 13-year high.
New York
US stock indexes slipped in choppy trading on Monday, as investors braced for a pivotal week for global markets in which Americans will elect a new president and the Federal Reserve is likely to cut its benchmark policy rate.
Some of the so-called “Trump trades” lost ground after a recent poll showed Ms Harris leading in Iowa, triggering a retreat in dollar, bond yields and bitcoin.
The Dow Jones Industrial Average fell 397.83 points, or 0.95 per cent, to 41,654.14,and the S&P 500 lost 27.52 points, or 0.48 per cent, to 5,701.28.
Most megacap stocks lost ground, with Tesla dropping 1.8 per cent as the EV maker’s China-made vehicle sales fell in October.
However, chip heavyweight Nvidia rose 1.6 per cent, after S&P Dow Jones Indices said on Friday the company would replace Intel in the Dow Jones Industrial Average. Intel’s 4.3 per cent slide weighed on the Dow. - Additional reporting by Bloomberg and Reuters
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