The DAX Index curve shows the downward trajectory at the Frankfurt Stock ExchangeEuropean shares edge up, boosted in part by upbeat earnings from Swiss lender UBS, but rising Covid-19 cases and upcoming deadline on US stimulus vote keep gains in check.Brexit negotiations, new lockdowns in parts of the UK, in Ireland and elsewhere in Europe dent the pound and underpin the dollar index.
The third-quarter earnings season picks up in earnest this week. Swiss investment bank UBS on Tuesday reportedin net profit between July and September, driven by a surge in both its trading and wealth management businesses. In Washington DC, Republicans and Democrats remain at odds over the details of another round of measures to help bolster the economy and the chances that the two sides will pass a bill before the November 3 election appear to be dwindling.
House Speaker Nancy Pelosi set a deadline for Tuesday to pass a $2.2-trillion Democrat-backed bill. She and Treasury Secretary Steven Mnuchin held multiple talks over the weekend on a deal, but the two sides remain far apart, which stripped over 1.5% off the three major indices. "All in all, a fresh stimulus bill before the elections remains far from certain and we suspect there is not much of it currently being priced in by the markets, which should keep the downside for risk assets relatively limited if prospects of a bipartisan-deal eventually collapse. This should be the main driver for global markets today," ING strategist Chris Turner said.