European Stocks Hold Steady as Key Events Unfold Globally

European markets traded in a narrow range on Monday, reflecting investor caution at the start of a significant week that includes the U.S. presidential election, Federal Reserve and Bank of England interest rate decisions, and further corporate earnings reports.

Market Overview

• Germany’s DAX: Down by 0.1%.
• France’s CAC 40: Fell by 0.1%.
• U.K.’s FTSE 100: Gained 0.2%.

Key Drivers and Events

1. U.S. Presidential Election
Investors globally are eyeing the U.S. election on Tuesday, as Republican Donald Trump faces off against Democrat Kamala Harris. The election outcome is anticipated to have a significant impact on fiscal policy and trade, both of which are critical to global financial markets.

2. Federal Reserve and Bank of England Policy Decisions
The Federal Reserve is expected to cut rates by 25 basis points when it concludes its policy meeting on Thursday, responding to slower jobs growth in October due to labor strikes and adverse weather. Similarly, the Bank of England is anticipated to lower rates by 25 basis points, following a rate cut in August. These moves come amid concerns about slowing economic momentum and inflationary pressures. Policy meetings from Sweden’s Riksbank and Norway’s Norges Bank are also set to take place this week.

3. European Economic Indicators
Monday’s data will include final readings for the October manufacturing Purchasing Managers’ Index (PMI) for the Eurozone, expected to underscore the challenges facing Europe’s manufacturing sector. Persistent sluggishness in manufacturing reflects the broader economic strain on the region.

Investor Sentiment and Outlook

With a packed week ahead, European markets are likely to see measured activity as investors await the outcomes of these global events.