Europe close: Stocks fall as investors eye US midterms; oil prices fall

(Sharecast News) - European stocks fell on Tuesday amid swings in the oil price, as investors eyed the US midterm elections.

The benchmark Stoxx 600 index closed down 0.5% at 646.38, Germany's DAX fell 0.3% to 25,900.91 and France's CAC 40 was off 0.3% at 8,020.31. Meanwhile, Brent crude was down 1.4% at $103.35 a barrel and West Texas Intermediate was 0.6% lower at $95.88. Oil prices had been higher earlier in the session following reports the US has launched strikes on Iran's Qeshm Island in the Strait of Hormuz.

Danni Hewson, head of financial analysis at AJ Bell, said: "It's been another tricky day for investors as global markets brace for the results of the US mid-terms.

"Chip stocks might have been enjoying a post-slump bump as investors hunted for bargains, but Apple's warning about the cost of components kept nerves about AI spending alive.

"The oil price rollercoaster was up and running with early increases to the price of a barrel of the black stuff. But it later retreated after comments from Donald Trump about stopping billions of dollars in funding for Israel, though the details on this were thin on the ground.

"There's no telling quite what mood the US president will be in after all the votes are counted, nor what the results might mean for his policies both foreign and domestic."

In equity news, shares in Lufthansa rose as the German flag carrier's third-quarter results met expectations.

Bayer gained as the German conglomerate raised full-year earnings guidance, citing a rally in its pharma arm after strong demand for key drugs offset market pressures at its agricultural and consumer-health units.

Drax surged after the British power generator said it was joining forces with Brookfield and AI infrastructure platform Radiant to develop a data centre in a project that could attract more than £20bn.

German fashion brand Hugo Boss fell as it downgraded its full-year guidance for sales and profit, pointing to softer demand. The company now expects earnings before interest and tax of �250m to �300m, down from previous guidance of �300m to �350m. It also said sales are now expected to decline in the high single-digit percentage range, having previously guided to a mid to high single-digit drop.