European Shares Mixed Ahead Of BoE Bailey's Speech

(RTTNews) - European stocks were mixed on Tuesday amid rising inflation expectations and concerns over U.S. fiscal deficit.

With about two weeks left before the Nov. 5 election, Treasury yields remained elevated on concerns about the path of the U.S. deficit regardless of which candidate wins the race for the White House.

The pan European STOXX 600 dropped 0.4 percent to 519.52 after falling 0.7 percent on Monday.

The German DAX edged up 0.3 percent, while France's CAC 40 shed 0.4 percent and the U.K.'s FTSE 100 declined 0.6 percent.

The British pound was little changed ahead of an upcoming speech from the Bank of England's (BoE) Governor Andrew Bailey.

Data showed earlier in the day that the U.K. budget deficit widened more than estimated in September and also hit the highest level for the month since 2021.

Chancellor Rachel Reeves is set to deliver the Autumn Budget 2024 on October 30. The budget is expected to hike taxes and reduce spending worth GBP 40 billion.

Chief Secretary to the Treasury Darren Jones said the budget would require difficult decisions to fix the foundations of the economy and begin delivering on the promise of change.

In corporate news, SAP surged 5.3 percent after the German software giant raised its full-year targets on a strong cloud business in the third quarter.

Swiss Computer parts maker Logitech International plunged 5.5 percent in volatile trade after raising its full-year outlook.

Swedish aerospace and defense company Saab AB soared 6 percent after reporting significantly higher profit and orders in its third quarter with strong growth in demand.

Tele2 AB, a provider of telecommunication services, fell 2.8 percent as it reported net sales in line with expectations in the third quarter.

Mulberry Group shares tumbled 3.2 percent after the British luxury fashion brand rejected a second takeover proposal from Mike Ashley's Frasers Group, saying it was "untenable".

Oil services engineer Hunting plunged 17 percent after cutting its full-year earnings guidance.

Cycling and motoring specialist Halfords Group jumped 5.3 percent after reporting stable first-half sales and backing its full-year guidance.

InterContinental Hotels dropped 1 percent after saying its revenue per available room (RevPAR), a key industry metric, increased 1.5 percent for the third quarter.