* FTSEurofirst 300 index rises 0.4 percent
* Gains seen capped ahead of U.S. election
* Tech, travel shares among top gainers
By Atul Prakash
LONDON, Nov 6 Stronger travel and tech stocks
helped European equities to advance on Tuesday and charts
signalled more gains, although uncertainty about the outcome of
the U.S. election is likely to cap moves throughout the session.
Polls show that U.S. President Barack Obama and Republican
challenger Mitt Romney will have a close fight in Tuesday's
election. The results could impact the outcome of "fiscal cliff"
negotiations on spending cuts and tax increases.
The scheduled austerity move of up to $600 billion, which
will come into force next year unless a deal is reached, has the
potential to drag the world's biggest economy back into
"The market is in a wait-and-see mode ahead of the U.S.
election," Philippe Gijsels, head of research at BNP Paribas
Fortis Global Markets in Brussels, said.
"....I would not be too hasty in buying cyclical stocks, but
will keep a close eye on some technology and financial shares."
European technology shares, up 1.2 percent, were the
top sectoral gainers, with ARM Holdings rising 5.5
percent in technical buying, with analysts saying that recent
price moves created conditions for strong upside momentum.
Travel and leisure stocks advanced 0.9 percent,
helped by a 1.6 percent rise in InterContinental Hotels,
which is opening up talks on the sale of its New York Barclay
hotel to a wider group of prospective buyers.
Tech and travel sectors helped the FTSEurofirst 300 index
of top European shares to rise 0.4 percent to 1,113.05
points by 0915 GMT. It fell 0.6 percent in the previous session.
The euro zone's blue chip Euro STOXX 50 index
was up 0.6 percent at 2,532.35 points. The index hovered above
its 50-day moving average of 2,512 and had a crucial support at
around 2,465, representing a trendline that has been in place
since August, charts showed.
"As long as prices are staying above the 50-day moving
average line, the short-term upward bias remains intact. I am
still looking for a break above the longer-term trendline on a
weekly chart at 2,560 and a strong horizontal resistance at
2,610," Roelof-Jan van den Akker, senior technical analyst at
ING Commercial Banking, said.
He said a breach of those key levels would confirm a bullish
trend for a further rally in the longer term towards 3,000.
Defensive shares broadly underperformed the wider market,
with the food and beverages sector staying flat and
utilities shares up only 0.2 percent.
E.ON, Germany's largest utility, fell 1 percent
after traders said Morgan Stanley had cut the group to
"underweight" from "equal-weight".
Among other individual movers, Hannover Re rose
6.8 percent after the company gave a bright outlook for 2012 and
2013 net profit following strong third-quarter results.