European stocks are likely to open higher on Tuesday as investors brace for the U.S. presidential election taking place in the shadow of the Covid-19 pandemic.
The presidential race is headed for a tight finish, with reports suggesting that Democrat Joe Biden's lead has shrunk over the last few days.
Asian markets rallied as strong factory output data from major economies helped investors shrug off fears over the possibility of a dispute U.S. election outcome.
Gold inched lower as the dollar index hovered near a one-month high hit on Monday. Oil prices steadied after two weeks of selling.
Monetary policy announcements from the Federal Reserve and Bank of England are due on Thursday, while the U.S. Labor Department will release its market-moving monthly jobs report on Friday.
No one expects any change to the fed funds rate target while the Bank of England is likely to increase its bond-buying program by 100 billion pounds.
U.S. stocks ended on a buoyant note overnight as investors cheered upbeat manufacturing data from China, Europe and the United States.
The Dow Jones Industrial Average climbed 1.6 percent, the S&P 500 rose 1.2 percent and the tech-heavy Nasdaq Composite added 0.4 percent.
European markets also turned in a solid performance on Monday as signs of a rebound in factory activity around the world outweighed concerns surrounding fresh lockdown measures in the U.K., Germany, France and Spain.
The pan European Stoxx 600 advanced 1.6 percent. The German DAX surged 2 percent, France's CAC 40 index rallied 2.1 percent and the U.K.'s FTSE 100 gained 1.4 percent.
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