S election is far from a done deal, but investors in Europe on Tuesday were placing their bets.

European shares extended their recovery rally with coronavirus worries temporarily on the backburner.

Attention instead shifted to the likelihood of a Joe Biden presidential win.

Analysts say a victory for the Democrat would be considered SAPO supportive for European equities.

That's on expectations of a bigger stimulus package on better trade ties with the US Michael Hewson is chief market analyst at CMC Markets.

At the moment, market surprising in a non optimal outcome But when Senate Way course, if that doesn't happen, get prepared for a little bit of the correction and I think his opinion polls on results start to come out.

You will see an awful lot of volatility over the next 24 hours as market seven flow on the back off the results as they come in.

But at the moment on optimal outcome is being priced it.

The pan European stocks 600 index rose 1.8% early on bouncing off five month lows hit last week over concerns about new lockdowns growth sensitive sectors such as oil and gas miners, banks and automakers led the rally, all rising more than 2%.

Among individual stocks, French bank BNP Paribas gained 6.4% as a surgeon.

Currency and commodity trading helped it beat quarterly profit expectations heading into Election Day.

Republican President Donald Trump trails Democratic rival Joe Biden in the national polls, But Trump is close enough in swing states to possibly piece together the votes needed to win the presidency.

For all today's gains, that leaves investors braced for a wild few days.