Europe Moves Lower on the Day

Shares in Europe extended losses yesterday, as investors digested another round of corporate earnings as well as today’s Federal Reserve monetary policy decision.

The US Dollar moved lower ahead of today’s FOMC meeting and he GBP/USD Forex market was down 0.14 percent at the close of the session in Europe. In the United States, thanks to Election jitters, the major stock indices were all lower as the volatility index spiked up 10 percent. Polls are showing that Donald Trump is now in the lead over Hillary Clinton.

The European STOXX 50 was mostly lower on the day. Shares of Standard Chartered led the way lower after reporting corporate earnings, for the third quarter that missed expectations. Shares of the bank tumbled over five percent.

Corporate Earnings Weigh on Europe as do US Elections

In other corporate news, shares of the multi-national oil company Shell rose nearly three percent after better-than-expected earnings. Cuts in spending and a downturn in oil prices also boosted investor confidence. Shares of BP fell over four percent despite okay corporate earnings. Net income was fifty percent below what it was last year in the third quarter.

Looking at US elections, there is political instability surfacing thanks to polls showing wild card Donald Trump polling ahead of Clinton for the first time. Both candidates are wracked with scandals but Clinton is seen as the status quo candidate as far as financial investors are concerned. The markets will react very wildly should Trump, who favors renegotiating trade deals and clamping down on immigration, win.