European Stocks Edge Down Ahead of Brexit Vote
22 October 2019 - 9:54PM
Dow Jones News
By Anna Isaac
U.S. stock futures and equities across Europe were mostly flat
Tuesday as investors turned their attention to the health of major
corporations reporting third-quarter earnings while awaiting
further developments on Brexit.
Futures tied to the Dow Jones Industrial Average index wavered
between tepid gains and losses ahead of another day laden with
earnings reports. A range of household names are poised to report
this morning, including Harley-Davidson, United Parcel Service and
Procter & Gamble. In the afternoon, tariff-hit Whirlpool will
report earnings, along with social media company Snap Inc.
Meanwhile, shares of Cadence Design Systems rose about 4.3% in
off-hours trading after the engineering-services provider posted
stronger-than-expected third-quarter results.
The pan-continental Stoxx Europe 600 index was also mostly flat
as Brexit uncertainty weighed on investor appetite ahead of another
day of voting by U.K. lawmakers on the terms of the nation's exit
from the European Union.
The British pound fell 0.2% against the dollar. Analysts expect
the pound to face further volatility in the days ahead.
Sovereign bond yields in major European economies fell amid the
continuing political upheaval. Bond yields fall as prices rise. The
German 10-year bund was down 2.7 basis points to minus 0.368%,
while the yield on the U.K. 10-year gilt ticked down to 0.726%. The
yield on the U.S. 10-year Treasury ticked lower to 1.780%, down
from 1.794% on Monday.
Among European stocks, shares in Just Eat rose almost 25% in
London after Prosus made a GBP4.9 billion ($6.3 billion) offer to
buy the food-delivery company. The deal was swiftly rejected by
Just Eat's board, as the terms are less attractive than it's
proposed merger with Amsterdam-listed Takeaway.com.
Shares in Reckitt Benckiser Group PLC fell by nearly 5%, its
biggest drop in more than six months after the consumer-goods
company issued its second profit warning this year.
China's Shanghai Composite Index gained 0.5% after President
Trump said Monday that a trade deal between the U.S. and China "is
coming along very well," leading to speculation that the two
nations may reach a tariff agreement in the coming months. His top
trade negotiator also said that the U.S. aims to finish the first
phase of talks by mid-November when the two countries meet in
Chile.
Later Tuesday, markets will get an update on the health of the
housing market in the U.S. when the National Association of
Realtors publishes figures on existing-home sales for last month.
Economists surveyed by The Wall Street Journal expect sales to have
fallen by 0.2%.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
October 22, 2019 06:39 ET (10:39 GMT)
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