European Stocks Slip as US Election Caution Counters Bank Gains

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.
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The Stoxx Europe 600 Index ended the session 0.3% lower as a drop in weight-loss drug maker Novo Nordisk A/S wiped the most points off the index. The banking sub-index rose to the highest since 2015, helped by gains in NatWest Group Plc after an analyst upgrade. Oil stocks were supported by higher crude prices.
M&A speculation, especially in the luxury-goods sector, sparked some sizable moves. Burberry Group Plc shares rose following a report on potential bid interest for the struggling British firm, while EssilorLuxottica SA popped higher on renewed chatter that Meta Platforms Inc. is weighing a stake in the eyewear manufacturer.
Elsewhere, Schneider Electric SE shares slipped as the French electric equipment maker replaced its 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.
“Clearly the US presidential election is a huge focus in the near term for all equity markets,” Thomas McGarrity, director, head of equities at RBC Wealth Management, said by phone. “The concern for European equities and European companies is around the potential for changes to trade policy that could be forthcoming,” adding that this is why European stocks are in a holding pattern ahead of the result of the US vote.
On a quieter day for earnings, Ryanair Holdings Plc slipped after the budget airline operator cut its passenger growth target for next year due to delivery delays from aircraft supplier Boeing Co. Morgan Stanley strategists said that while European earnings are improving as the season progresses, the overall picture is still mixed.
Novo Nordisk dropped as new data from Viking Therapeutics Inc. on an obesity pill to eventually compete with blockbuster shots spurred a rally in the small US biotech company.
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With assistance from Sagarika Jaisinghani and Michael Msika.
This article was generated from an automated news agency feed without modifications to text.