Stocks open higher ahead of US election

Stocks open higher ahead of US election

UK and European Stocks have opened with gains this morning ahead of the US election, following U.S. equity futures and Asian stocks higher. In polling, Joe Biden holds the lead.

On Monday, UK and European stocks ended higher after upbeat manufacturing data from the euro zone, U.S. and China outweighed concerns about coronavirus cases, tighter lockdown restrictions and uncertainty about the outcome of U.S. presidential election.

US stocks ended on a buoyant note, as bargain hunting after recent sharp losses, and a report showing acceleration in U.S. manufacturing activity pushed up prices. The ISM Manufacturing PMI for the United States jumped to 59.3 in October of 2020 from 55.4 in September, beating market forecasts of 56.4. The reading pointed to the strongest growth in factory activity since September of 2018, amid faster increases in new orders, new export orders (55.7 vs 54.3) and production and a rebound in employment and inventories.

The IHS Markit Eurozone Manufacturing PMI was revised slightly higher to 54.8 in October 2020, from an initial estimate of 54.4 and compared with September’s final 53.7. The latest reading pointed to the steepest month of expansion in the manufacturing sector since July 2018, as output growth accelerated to an over two-and-a-half-year high and new orders rose by the most since the start of 2018.

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