UPDATE 2-European stocks hit 1-week high as investors await U.S. election outcome

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* Trump trails Biden in U.S. polls
* BNP Paribas jumps on Q3 profit beat
* Ferraci races higher after upbeat forecast

(Updates to market close)
By Sruthi Shankar
Nov 3 (Reuters) - Banking and auto stocks propelled the
European stocks benchmark to a one-week high on Tuesday, while
investors anticipated a clear win for Democrat Joe Biden in the
U.S. presidential election would lead to more economic stimulus.
The pan-European STOXX 600 .STOXX closed 2.3% higher - its
best day since mid-June. Bourses in Frankfurt .GDAXI , Paris
.FCHI and London .FTSE saw similar gains.
Stock markets worldwide found strength in signs that Biden
held a strong and consistent lead in national opinion polls over
Republican President Donald Trump, although the race is tighter
in several swing states. A Biden win is widely considered to be supportive for
European equities in the near-term because of expectations it
would mean a bigger stimulus package and better trade ties with
the United States.
Banks .SX7P led gains among European sectors, with French
lender BNP Paribas BNPP.PA jumping 6.1% as a surge in currency
and commodity trading helped it beat quarterly profit estimates.
Automobiles & parts sector .SXAP , which has borne the
brunt of the Trump administration's trade war with China, gained
3.5%.
Boosting the index, luxury automaker Ferrari RACE.MI
surged 7.1% after it forecast 2020 earnings at the top of its
previous guidance range as new models such as the hybrid SF90
Stradale start to reach customers. Insurers .SXIP , financial services companies .SXFP and
construction & materials .SXOP were the other top gainers.
"Even though last minute surprises from the U.S. vote can't
be ruled out, I believe European equities are close to a very
interesting turnaround point which could mean a more
'structural' return of investor interest towards the region,"
said Michele Pedroni, portfolio manager at Decalia Asset
Management in Geneva.
"Any reversal, however, could be jeopardised should the
crisis triggered by the coronavirus pandemic drag on for too
long, given that Europe has limited political and economic
manoeuvre space to progressively provide support to its
economy," he added.
The STOXX 600 shed almost 6% last week as soaring
coronavirus cases pushed major economies including France,
Germany and the United Kingdom back into partial lockdown,
leading economists to cut fourth-quarter economic growth
expectations. Among other individual movers, British homebuilder Crest
Nicholson CRST.L surged 16.5% after it reinstated its dividend
and said annual earnings would top market expectations.
German meal-kit delivery company HelloFresh HFGG.DE , which
has more than doubled in value this year as lockdowns drove
demand, slipped 1.2% after quarterly results.