UKX FTSE 100 Index

By Riva Gold 
   -- U.S. stock futures higher 
 
   -- China markets jump 
 
   -- Brexit uncertainty rattles European markets 

Global stocks mostly stabilized Thursday after a recent selloff, even as ongoing Brexit developments drove sharp swings in the British pound and European markets.

Stock markets in Hong Kong and Shanghai advanced following an upbeat report from tech giant Tencent, while futures markets pointed to a 0.1% opening rise for the S&P 500 after worries about the technology sector and slowing world growth sent the index to a fifth straight session of declines on Wednesday.

The Stoxx Europe 600 reversed early gains to fall 0.6%, however, while the British pound fell sharply as investors largely focused on Brexit developments.

The pound fell 1.5% to $1.2790 after U.K. Brexit Secretary Dominic Raab resigned, shortly followed by cabinet minister Esther McVey, signaling turmoil for U.K. Prime Minister Theresa May's plan for the country to exit from the European Union.

"I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom," he wrote.

The FTSE 250 index of U.K. stocks fell 1.2% on Thursday on uncertainty about the outlook of U.K. companies, while the more multinational-heavy FTSE 100 index rose 0.2%, benefiting from the pound's weakness. The FTSE 100 generates roughly 77% of its revenue outside the U.K., according to FactSet.

Yields on 10-year U.K. government bonds fell to around 1.39% from 1.52% Wednesday afternoon.

Thursday's moves came after the U.K.'s currency had received a small boost late Wednesday when Mrs. May secured cabinet approval for her Brexit deal.

The auto sector also lagged behind in Europe after data showed new car sales in the European Union continued their decline in October, hit by the fallout from the introduction of new emissions tests over the summer.

Stocks around the world have been volatile this week amid steep swings in oil prices, concerns around the technology sector and increasing doubts about the health of the world economy.

Brent crude oil was up 0.5% at $66.45 a barrel on Thursday after falling 6.6% on Tuesday in volatile trading.

"When you have oil go down [so much] in a week, that's going to create volatility that's far reaching," said Mark Esposito, chief executive at Esposito Securities.

Downbeat economic readings have also clouded the outlook for the world economy. Federal Reserve Chairman Jerome Powell said Wednesday evening that the U.S. central bank was closely monitoring a modest deceleration in global growth.

"You still see solid growth, but you see growing signs of a bit of a slowdown. And it is concerning," he said.

Mr. Powell didn't say any of the challenges were strong or surprising enough right now to change the Fed's policy path, however.

In Asia, stocks were broadly higher outside Japan amid media reports that China made an opening bid to the U.S. on trade, as well as upbeat results in the technology sector.

Shares of Tencent Holdings rose 5.8% after the Chinese tech giant reported a better-than-expected 30% rise in profits. Hong Kong's Hang Seng rose 1.75%, the Shanghai Composite Index rose 1.4% and South Korea's Kospi rose 1%.

Japan's Nikkei Stock Average was down 0.2% as the yen strengthened against the dollar. A stronger currency tends to pressure shares of multinationals who translate earnings from overseas.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

November 15, 2018 05:28 ET (10:28 GMT)

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