European shares rise as sentiment gains on US vote result, Spanish stamp duty ruling

European shares are higher Wednesday, as investor sentiment is on the up following the US midterms and a ruling that means Spanish banks aren't liable for mortgage stamp duty payments.

European shares rise as sentiment gains on US vote result, Spanish stamp duty ruling

European shares are higher Wednesday, as investor sentiment recovers after the US midterm vote saw control of the House move from the Republicans to the Democrats. In addition, a Supreme Court ruling in Spain that banks don’t have to make any local mortgage stamp duty payments, also proved supportive.

By 1115 BST, the EUROSTOXX 600 was 1.03% higher, while the EUROSTOXX 50 rose 1.19%. Regional bourses were also upbeat. The German DAX was 0.94% in the green, the French CAC gained 1.27% and the Spanish IBEX was up 1.70%.

US vote, Spanish ruling prove supportive

Investor sentiment gained a boost early Wednesday, as the results of the US midterm vote showed that after a wave anti-Trump sentiment, control of the house has shifted from the Republicans to the Democrats.

However, the Republicans gained a larger majority in the Senate after Tuesday’s polling day.

Adding to the more positive tone Wednesday, was a ruling by the Spanish Supreme court that Spanish banks aren’t liable for local mortgage stamp duty payments.

The decision reversed an earlier one, which ruled Spanish Banks should pay the tax, which would have cost them billions of euros.

Shares in Bankia, Banco Santander and Banco Sabadell were all in the green following the decision.

Earnings results

Against that backdrop, some earnings results worked to weigh on other stocks.

BMW shares are trading lower as the German carmaker reported lower-than-expected profits following higher than expected R&D investment spending as the business works to develop its electric mobility range.

BMW shares fell 2.18% to trade at €75.24.

Adidas shares, meanwhile, were also in the red. That move came despite the sportswear brand reporting broadly upbeat earnings and also raising its full year 2018 profit guidance following strong sales across North America.

A weaker performance in Western Europe, however, has seen the firm cuts its revenue guidance from around 10% growth to between 8-9%.

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