Thursday, November 3, 2016

European Stocks Seen Lower On US Election; Credit Suisse, Societe Generale Report Earnings

By Silvia Amaro
CNBC
November 3, 2016

European markets should open lower on Thursday morning on continued concerns over the U.S. election, with investors also focused on the Bank of England's latest rate decision and fresh corporate earnings.

The FTSE is seen 17.5 points lower at 6,832.8, the CAC 40 is expected to open 9 points lower at 4,408.4 and the DAX should be 18.4 points lower at 10,358.6.

The U.S. Federal Reserve announced Wednesday that it was keeping its interest rate at 0.25-0.5 percent, but sent stronger signals that, unless a major event takes place before December 14, it is ready to hike rates. Anxiety among investors looms as uncertainty regarding next week's U.S. presidential becomes more evident. Polls continue to show a tight race between Hillary Clinton and Donald Trump.

Earnings

On the earnings front, Vonovia, the German real estate company, presented a rise in its key profit metric of 8 percent in the first nine months of 2016.

The French bank, Societe Generale, said its revenue went up 4 percent during the third quarter, due to higher fixed income trading. However, the bank is concerned over weakness in its domestic retail business.

Credit Suisse saw net profit of 41 million Swiss francs ($42.25 million) in the third quarter of this year. The number surprised on the upside against a Reuters poll estimating a contraction of 120 million Swiss francs.

L'Oreal, Morrison, Glencore and 3i Infrastructure are due to announce their earnings throughout Thursday.

Governor Mark Carney of the Bank of England will announce the bank's latest rate decision at 12.00 London time. Thursday's monetary meeting is the first following Carney's announcement that he will continue in the job until 2019.

Thursday's calendar will also see the release of the U.K.'s PMI services figures and the euro area's unemployment rate for September.


Article Link To CNBC: