Equity markets in the red

Global stocks were lower for a third consecutive day on Wednesday, tracking a global sell-off in risk assets as uncertainty over the US presidential election outcome intensified. Anxious investors the world over are pricing an even tighter US election race, with increased fears of a Trump win escalating the uncertainty that would bring to the markets.

European shares were dragged lower by autos as they continued to struggle and be the worst performing sector on the day. US stocks were also lower, as investors zeroed in on the conclusion of a Federal Reserve meeting while keeping an eye on the latest presidential election developments.

Bank shares take a hit

The banking sector was one of the worst performers during Wednesday’s session, falling 1.63%. Italian banks struggled significantly after media reports that the government could delay the upcoming referendum on constitutional reform – something that the office of Prime Minister Matteo Renzi was quick to deny. Shares of Banco Popolare were down 4.7% and Banca Pop Milano were down 4.49%.

Standard Chartered shares were also trading in the red. Shares were down 4.25%, building on a 5.4% loss on Tuesday when the bank reported worse than expected earnings. Other banks were also lower. Royal Bank of Scotland was off 1.93% and Barclays and HSBC lost 2.65% and 1.4%, respectively.

Corporate earnings in focus

Companies continued to report their quarterly earnings on Wednesday. The standout performer had to be G4S plc. Shares soared 10% on Wednesday after the business services company reported a rise in revenue, sending its shares well into positive territory.

Retailers were also doing well. Shares of Next plc were up 3.6% after the clothing company said October sales improved significantly.

Shares of Hugo Boss were also soaring on Wednesday. The German fashion house posted earnings that were ahead of forecasts, sending its shares up 5%.

However, it wasn’t bright and sunny for all companies that reported earnings on Wednesday. Lufthansa was among the companies that fell during the session. The German airline announced its adjusted earnings before interest and taxes that fell in the third quarter. This news sent shares down 2.5% during the session.

Taking a look at oil…

Oil futures dived to a five-week low on Wednesday after the Energy Information Administration revealed that crude stockpiles jumped by more than 14 million barrels, making it the largest weekly climb on record. Wednesday was the fourth consecutive day of losses in oil prices, after a meeting by OPEC members last weekend failed to finalise plans to implement an output cut.

Crude oil fell 3.11% to trade just above $45 a barrel.