European stocks wary of US vote

London - European shares dipped in early trade on Tuesday as investors stayed cautious ahead of the US Presidential election and as worries about a deep downturn in the global economy refused to go away.

At 08:19 GMT, the FTSEurofirst 300 index of top European shares was down 0.1% at 932.73 points, led lower by commodity shares which tracked metal and oil prices that weakened on economic worries.

Rio Tinto, Xstrata, Anglo American, Vedanta and Antofagasta fell 3.7% to 4.9%, while among energy stocks, Royal Dutch Shell, BP and Total fell 0.5% to 1.2%.

BMW fell 5% after a disappointing third-quarter update.

Banks and defensives added most points to the index, with Dexia up 4.7%, foods group Nestle up 0.9% and Roche up 0.9%.

Democrat Barack Obama leads Republican John McCain in five out of eight key battleground states as Americans prepare to vote in the White House race, according to a series of Reuters/Zogby polls released on Tuesday.

"Investors are marking time ahead of the elections, gearing up for all the drama," said Bernard McAlinden, strategist at NCB Stockbrokers in Dublin.

"A clear mandate either way is the important thing for equity markets. There is the implicit notion that things were not right anyway, and my impression is that people want someone with the energy to change things, including markets."

- Reuters