Markets tread water as they wait for US election results

Markets treaded water on Tuesday as investors awaited the outcome of the US presidential race. Penneys' owner, AB Foods, provided one the day's highlights after it reported profit growth and predicted that it would benefit from Brexit.

DUBLIN

The Irish market outperformed the rest of Europe as a number of key stocks gained ground. Insulation and building materials manufacturer, Kingspan, which has been under pressure since it emerged that it is facing a squeeze in supplies of a component, gained 1.7 per cent to close at €23. Stockbroker Davy published a note early in the day making an investment case for the company.

Airline Ryanair climbed 1.9 per cent to €13.66. The company is on the road briefing investors after reporting earlier this week that first-half profits grew 7 per cent to €1.17 billion.

Building materials giant and index heavyweight, CRH, rose 1.83 per cent to €29.79. The Irish company generates half its revenues in the US and traders suggested that investors appear to be betting that Hillary Clinton would get to the White House, and that the group would benefit from a likely pick up in the economy as a result.

Food and ingredients specialist, Kerry Group, fell 1.1 per cent to €66.35. Traders noted that its sector has been under pressure as investors are switching to financial services.

LONDON

Marks & Spencer took a hammering after it revealed plans to axe 30 UK stores and slash shop space devoted to its ailing clothing ranges as it focuses more on food. Shares were off more than 5 per cent at 331 pence sterling as half-year profits crashed 88.4per cent to £25.1 million, partly due to higher pension costs, while earnings fell 18.6 per cent to £231.3 million on an underlying basis. Like-for-like sales in the division fell by 5.9 per cent in the six months to October 1st.

In a contrast of fortunes, the owner of Irish retail chain, Penneys, Associated British Foods was the biggest riser on the London market after saying it should benefit from Brexit, as it predicted rising profits despite a squeeze on its budget fashion chain from the plunging pound. Shares were up 5.8 per cent to 2,633p, as it posted a 5 per cent rise in underlying pre-tax profits to £1.07 billion for the year to September 17th and said it expected another hike in earnings for the coming year.

Miner BHP Billiton was up 57.5p to 1,279p, another resources stock, Antofagasta rose 24p to 589p, Mediclinic International gained 25p to 932p.

Tobacco products maker, Imperial Brands was down 114p to 3,689p. Builder Barratt Developments fell 7.5p to 454.5p and its rival Persimmon was off 25p at 1,663p.

EUROPE

The Stoxx 600 capped its biggest two-day advance in more than a month, rebounding from a 4.5 per cent drop in the previous 11 sessions. While uncertainty about the outcome of the US vote has dominated investor sentiment in recent days, tepid earnings reports and worries about tightening monetary policy have also weighed on stocks since a four-month high in September.

Profits at the benchmark's members are down 1 per cent so far this season, according to a note by JPMorgan Chase and Co. Among stocks active on corporate news: Credit Agricole SA rose 5.6 per cent after the French bank said quarterly profit doubled from a year earlier and bond-trading income surged. Vestas Wind Systems slid 9.1 per cent after forecasting slower growth next year.

ArcelorMittal fell 4.3 per cent after the world's largest producer of steel reported third-quarter core profit below expectations and said its final quarter would be weaker than the third.

US

US stocks moved higher on Tuesday afternoon, with market sources citing projections from data firm VoteCastr favouring Democrat Hillary Clinton in the US presidential election.

Among stocks, CVS tumbled 13.6 per cent to $72.05 and was the top drag on the S&P after the drugstore operator cut its full-year profit forecast. Walgreens fell 3.1 per cent.

Hertz's more than 50 per cent slump was set to be the stock's biggest ever after the car rental company slashed its full-year profit forecast. Advancing issues outnumbered decliners on the NYSE by 1,704 to 1,122. On the Nasdaq, 1,509 issues rose and 1,085 fell.

Additional reporting: Bloomberg, Reuters