European Stocks Steady as Industrials Rise Before U.S. Midterms

(Bloomberg) -- European equities were little changed at the open as investors held their breath for the U.S. midterm results and as chemicals and industrials climbed amid trade optimism.

The Stoxx Europe 600 Index added 0.1 percent. Deutsche Post AG increased 3.4 percent. Chemical stocks also led the gains, with Linde AG rising 1.2 percent. Copenhagen-based jewelry maker Pandora A/S plunged 9.2 percent after a profit warning.

It’s a big day for the markets as the U.S. votes in the midterm elections today, with polls forecasting that Democrats might win the House majority, making President Donald Trump’s job harder. Investors also continue monitoring the trade talks as a top deputy to Chinese President Xi Jinping said Beijing remained ready to discuss a trade solution with the U.S.

“Absent a worsening in market conditions and/or change in voter sentiment, we do not expect Trump to alter his position on trade significantly” following the midterm elections, said Emmanuel Cau, head of European equity strategy at Barclays Plc, in London. “The recent correction is overdone and has improved the risk-reward for equities.”

To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon Menon

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