European stock markets rose on Wednesday, following Wall Street’s lead as Republican candidate Donald Trump appeared poised to win the US presidential election.
By 03:02 ET (08:02 GMT), Germany’s DAX index was up 0.6%, France’s CAC 40 had gained 0.7%, and the UK’s FTSE 100 rose by 0.8%.
**Trump Declares Victory**
Trump seems to be on track for a return to the White House after securing key battleground states, including Pennsylvania, North Carolina, and Georgia. Fox News, a right-leaning network, has already called the election for Trump, and the candidate himself has publicly declared victory, despite the race not yet being officially decided. Additionally, Republicans are projected to have gained a majority in the Senate, raising the possibility of a Republican sweep in the 2024 elections.
Such a result could provide Trump with a mandate to push forward his tax cut agenda, which could benefit US corporations, as reflected in the strong rise of futures contracts tied to major Wall Street indices. However, concerns about steep tariffs and the potential for a global trade war under his leadership could negatively affect European companies.
**BMW Reports Profit Drop**
In Europe, investors are awaiting the release of services PMI data across the eurozone, while German industrial orders rose 4.2% month-on-month in September, surpassing the expected 1.5% increase.
Attention is also focused on the latest quarterly earnings reports, with the season in full swing. BMW (ETR:BMWG) reported a significant decline in its third-quarter profit, falling short of expectations due to weak sales in China and issues with brakes. However, the German automaker reassured investors that it remained on track to meet its adjusted full-year financial targets.
Novo Nordisk (NYSE:NVO) reported third-quarter operating profits that met expectations, as the company, which produces weight-loss and diabetes medications, narrowed its full-year sales and profit forecasts.
Marks & Spencer (OTC:MAKSY) posted a stronger-than-anticipated 17.2% increase in first-half profit, and the British retailer raised its outlook for the full year, signaling that its recent turnaround strategy is beginning to show results.
Puma (OTC:PMMAF) saw a 5% rise in currency-adjusted sales for the third quarter, though this fell short of expectations, as ongoing negative foreign exchange impacts continued to affect the German sportswear company’s performance.
UniCredit raised its profit forecast after posting a higher-than-expected net profit for the third quarter. The Italian bank, Italy’s second-largest by assets, also announced plans to start paying out 50% of its net income to shareholders in cash starting next year.
Credit Agricole (OTC:CRARY) reported a smaller-than-expected drop in third-quarter net profit, as a record performance in the French bank’s investment division offset weakness in some of its retail businesses.
**Crude Prices Dip After API Data**
Oil prices fell on Wednesday following data showing an increase in US crude stockpiles, while the dollar strengthened amid Trump’s election progress.
By 03:02 ET, the Brent crude contract had dropped 1.2% to $74.61 per barrel, while U.S. crude futures (WTI) were down 1.2% at $71.16 per barrel.
According to data from the American Petroleum Institute released on Tuesday, U.S. crude inventories rose by 3.13 million barrels last week, exceeding the expected increase of 1.1 million barrels.
Official inventory data is expected later on Wednesday, but if the API figures are confirmed, it could raise concerns about weakening U.S. fuel demand, particularly as the winter season nears.
Additionally, a stronger U.S. dollar makes commodities priced in dollars, like oil, more expensive for holders of other currencies, which can dampen demand.
