European Shares Trade Steady as Focus Turns to US Election

European stocks were little changed as traders’ focus turns to the US election and with the Federal Reserve decision looming later in the week.

(Bloomberg) — European stocks were little changed as traders’ focus turns to the US election and with the Federal Reserve decision looming later in the week.

The Stoxx Europe 600 Index was flat as of 8:09 a.m. in London, with miners and utilities leading gains and energy and real estate shares among the decliners. Carrefour SA advanced as the French grocer is in the early stages of studying ways to boost its valuation and Associated British Foods Plc gained as annual profit jumped and the British conglomerate launched another share buyback program.

US voters get to decide today between Donald Trump and Kamala Harris for their next president, with surveys showing a race close to deadlocked both nationally and across swing states. Volatility could rise if a disputed result drags the vote count out for weeks.

“We could record a wait-and-see trading day today, with low volumes and low volatility, given the US elections,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg.

Traders are wondering what US political landscape will confront them on Wednesday morning and some investors could rotate back into European stocks and out of US peers if Harris wins, pressuring US equities, according to RBC Capital Markets strategists.

Thursday will be the Fed’s decision day, with traders set to closely follow Chair Jerome Powell’s press conference.

For more on equity markets:

• Markets Aren’t Going Gently Into Election Night: Taking Stock
• M&A Watch Europe: Vodafone, Carrefour, Salzgitter, EQT, Atos
• Gulf IPOs See Soaring Demand as Economies Diversify: ECM Watch
• US Stock Futures Rise; QuinStreet, Astera Labs, Palantir Gain
• Delays at the Gate: The London Rush

You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.

—With assistance from Jan-Patrick Barnert.