European stocks mixed ahead of rate decisions, earnings

The DAX index traded 0.1 per cent lower, and the CAC 40 declined 0.1 per cent, while the FTSE 100 jumped 0.2 per cent

European stock markets traded in tight ranges Monday, at the start of an action-packed week that includes a US presidential election, interest rate decisions from the Fed and Bank of England, as well as more quarterly corporate earnings.

At 03:05 ET (08:05 GMT), the DAX index in Germany traded 0.1 per cent lower, and the CAC 40 in France declined 0.1 per cent, while the FTSE 100 in the U.K. jumped 0.2 per cent.

European equities have started the new week on a cautious note, as investors shift their focus to Tuesday’s US presidential election.

Early voting was already well underway in what is seen as a very tight race for the White House, pitching Republican Donald Trump against Democrat Kamala Harris, in an election race that will have far-reaching consequences for fiscal policy and trade.

Also of interest will be the Federal Reserve’s latest policy meeting, which concludes on Thursday.

The market widely expects the policymakers to agree to a rate cut of 25 bps after Friday’s nonfarm payrolls report showed that jobs growth almost stalled in October amid the impact of strikes and weather disruptions.

In Europe, the Bank of England (BoE) also meets on Thursday, and is also expected to reduce rates by 25 basis points, after cutting rates for the first time in more than four years in August.

The Swedish Riksbank as well as the Norges Bank, in Norway, also hold policy meetings this week.

The data schedule includes the final European manufacturing purchasing managers’ index (PMI) numbers for October, which are set to confirm that the region’s manufacturing sector remains in a dire state.