Stock markets diverge tracking US outlook [Video]

Europe’s main stock markets dropped Tuesday after gains for Chinese indices, as traders sought to ascertain the outlook for US interest rates ahead of the presidential election.

Investor focus was also on company earnings, as gold and oil prices continued to win support from Middle East tensions.

“A mix of continuing unrest in the Middle East and uncertainty over the US election casts a cautious shadow over markets,” noted Derren Nathan, head of equity research at Hargreaves Lansdown.

Wall Street retreated from record highs Monday, while the dollar was mixed against main rivals on Tuesday.

Tech titans Alphabet and IBM announce their latest results over the next two days, while earnings from Boeing, Coca-Cola, and L’Oreal are also in the pipeline.

General Motors raised some of its full-year profit projections Tuesday following solid earnings as strong vehicle pricing compensated for lower auto sales.

All major European equity markets were in …