European Stocks Steady With U.S. Stimulus, Fed Meeting in Focus

(Bloomberg) -- European equities were little changed as President Donald Trump backed a piecemeal approach to aid, offering a glimmer of hope that a stimulus deal is still possible before the presidential election, after previously suspending talks.

The Stoxx 600 Index edged down about 0.1%, with investors looking ahead to the release of the minutes from the U.S. Federal Reserve's September meeting and continuing to digest Trump's decision to halt stimulus talks.

While shares in chipmaker Dialog Semiconductor Plc rose after its trading update, an initial gain for U.K. food retailer Tesco Plc ebbed away. Roche Holding AG also weighed on the benchmark as an issue at its warehouse delayed shipping of some of its diagnostics tests in the U.K.

Even with virus infection rates rising and investors turning their focus to next month's U.S. Presidential election, European equities have gained 1.2% in October, led higher by a comeback for banks and travel stocks, which were hit hard earlier this year.

“There are some industries, some sectors, some companies that are able to adapt and actually do really well, and there are some that really, really struggle, and that's why we see a huge, huge gap between winners and losers this year,” Marija Veitmane, senior multi-asset strategist at State Street Global Markets, said by phone. This is a lot more significant than the broader equity market performance, she added.

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