Fundamental Comment

Positive corporate results push European shares higher

Positive corporate results push European shares higher

European stocks traded higher during the day of Tuesday with the support of the strong corporate profits recorded by the Swiss UBS, despite concerns about the strict restrictions imposed by European governments to contain the spread of the corona pandemic. 

The benchmark Euro STOXX 600 rose 0.2% after losses recorded by the beginning of today's trading. UK FTSE 100 Index rose 0.2% to the level of 5,896.68 points. 

French CAC 40 index rose 0.6% at 4958.91 points, and the Euro Stoxx 50 surged 0.08% at 3,246.22 points. 

European stocks found support from positive corporate results, but the general trend remains for the decline amid fears of the future growth in the European region in the wake of a second wave of Corona pandemic. 

Ireland announced on Monday for some of the most severe Europe restrictions on the coronavirus, while Italy, Spain and Britain imposed restrictions to reduce the spread of virus that now threaten to halt the infant economic recovery. 

Meanwhile, there are some tensions in markets due to uncertainty about the outcome of the November-3 U.S. Presidential elections. 

Later in the day, eyes will focus on Pelosi and Mnuchin negotiations about stimulus, as they aim to reach an agreement before elections.  

As for the US dollar, the federal currency continued to decline for a third consecutive session due doubts about the approval of the US stimulus package before the US elections. 

The dollar index, which measures the performance of the US currency against a basket of six major currencies, hit its lowest level at 93.27 after opening today at 93.42. 


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