European bourses tracked modestly higher midday Tuesday as traders digested a solid earnings season, while also pondering global geopolitics and the pending US national election. Tech and retail stocks led limited gains, while oil issues lagged behind other sectors. Investors kept an eye on Wall Street futures indicating positive movement, coupled with higher closes overnight on Asian exchanges. S&P Global reported that the UK services purchasing managers index (PMI) was 52.0 in October, down from 52.4 in September but still above the critical 50-marker that differentiates growth from contraction. The pan-continental Stoxx Europe 600 Index posted a modest increase of 0.1% mid-session.
Furthermore, the Stoxx Europe 600 Technology Index saw a slight uptick of 0.2%, and the Stoxx 600 Banks Index also gained 0.1%. On the other hand, the Stoxx Europe 600 Oil and Gas Index experienced a slight decline of 0.1%, although the Stoxx 600 Europe Food and Beverage Index inclined by 0.1%. The REITE, a European REIT index, remained flat, while the Stoxx Europe 600 Retail Index increased by 0.3%. In terms of national market indexes, Germany's DAX and the FTSE 100 in London both rose 0.2%.
The CAC 40 in Paris climbed by 0.2%, while Spain's IBEX 35 showed a gain of 0.3%. Yields on benchmark 10-year German bonds elevated to near 2.43%. Front-month North Sea Brent crude oil futures showed a rise of 0.5%, reaching $75.47 per barrel. Additionally, the Euro Stoxx 50 volatility index decreased by 1.8% to 20.58, suggesting marginally above-average volatility for European stock markets over the next 30 days, which serves as a negative indicator.
A reading above 20 implies more turbulent markets ahead, whereas below 20 indicates calmer trading conditions..