Investing.com - European stock markets rose Wednesday, following the lead from Wall Street, as Republican candidate Donald Trump looked set to win the US presidential election.
At 03:02 ET (08:02 GMT), the DAX index in Germany traded 0.6% higher, the CAC 40 in France rose 0.7% and the FTSE 100 in the U.K. gained 0.8%.
Trump declares election victory
Trump appears to be heading for a return to the White House after claiming victory in several key battleground states, including Pennsylvania, North Carolina and Georgia.
Indeed, the right-leaning Fox News has called a Trump victory, while the man himself has publicly declared victory even with the election yet to be officially called. Republicans are also seen having taken a majority in the Senate, raising the possibility of a Republican sweep in the 2024 elections.
This would provide Trump with a platform to enact his agenda of tax cuts which could boost Corporate America, as seen by the sharp jump in the futures contracts attached to the main Wall Street indices, even if steep tariffs and a potential global trade war under his presidency could impact European companies negatively.
BMW's Q3 profit slumps
Back in Europe, investors will study the latest services PMI data from around the eurozone, while German industrial orders rose 4.2% on a monthly basis in September, more than the 1.5% expected.
But most eyes will be on more quarterly earnings, with the season in full swing.
BMW (ETR:BMWG) reported a substantial drop in its quarterly third-quarter profit, missing expectations because of slumping China sales and brake problems, but the German auto giant said it was on track to meet its adjusted full-year financial outlook.
Novo Nordisk (NYSE:NVO) posted third-quarter operating profit in line with expectations after the drugmaker, which manufactures weight-loss and diabetes drugs, narrowed its full-year sales and profit guidance range.
Marks & Spencer (OTC:MAKSY) reported a better-than-expected 17.2% rise in first-half profit, and the British retailer forecast "further progress" for the full year, adding to evidence its latest turnaround plan is working.
Puma (OTC:PMMAF) reported a 5% rise in currency-adjusted sales for the third quarter, but this was below expectations as negative effects from foreign exchange rates continued to weigh on the German sportswear maker’s business.
UniCredit (LON:0RLS) raised its profit outlook, with Italy's second-biggest bank by assets stating it would start paying out half of its net income to investors in cash from next year, after posting a higher-than-expected net profit for the third quarter.
Credit Agricole (OTC:CRARY) reported a smaller-than-expected drop in third quarter net profit after a record three months for the French bank’s investment business offset weakness at some of its retail businesses.
Crude prices slip lower after API release
Oil prices fell Wednesday after industry data pointed to a rise in US crude stockpiles, while the dollar surged on Trump’s election progress.
By 03:02 ET, the Brent contract slipped 1.2% to $74.61 per barrel, while U.S. crude futures (WTI) traded 1.2% lower at $71.16 per barrel.
Data from the American Petroleum Institute data, released on Tuesday, showed that U.S. crude inventories rose by 3.13 million barrels last week, higher than the expected 1.1 million barrels.
The official inventory numbers are due later on Wednesday, but if the API release is confirmed it would spur some concerns that U.S. fuel demand was cooling, especially as the winter season approaches.
A stronger U.S. dollar makes commodities denominated in the greenback, such as oil, more expensive for holders of other currencies, in turn curbing demand.