Global Stocks Tick Higher Despite Extended Brexit Uncertainty
October 21 2019 - 9:32AM
Dow Jones News
By Caitlin Ostroff
Global stocks edged higher Monday as investors awaited fresh
developments on the U.K.'s divorce from the European Union and
trade talks between China and the U.S.
S&P 500 futures ticked up 0.3% ahead of more corporate
results this week. So far, third-quarter earnings have beaten
analysts' expectations, despite the slowing global economy.
Shares in Boeing declined 2.5% in premarket trading after The
Wall Street Journal reported that Congress is ramping up scrutiny
of the plane maker's leaders as new details pointed to undue
management pressure on employees.
Shares of Cardinal Health dropped almost 4% premarket, while
McKesson fell 2.1% and AmerisourceBergen declined 1.8%. The Journal
reported that the companies reached a last-minute settlement,
avoiding a trial seeking to blame them for fueling the opioid
crisis.
Cosmetics maker Coty saw shares rally 6.7% after the company
said it would explore strategic alternatives for its professional
beauty business.
The British pound ticked up 0.2% against the dollar, climbing
past the psychological barrier of $1.30 after a critical vote on
Prime Minister Boris Johnson's Brexit dea l was delayed. The U.K.'s
FTSE 100, which tracks companies with large overseas earnings that
benefit from sterling's decline, edged up 0.2%.
"We're going to have that kind of ebbing and flowing," said
David Madden, market analyst at CMC Markets. "It's just going to be
hanging around to find out what's happening."
Optimism that Mr. Johnson will secure lawmakers' backing for his
deal boosted European bond yields, with the rate on the 10-year
U.K. gilt rising to 0.748% from 0.711% Friday afternoon and the
10-year German bund yielding minus 0.349%, up from minus 0.379% at
the end of last week. The 10-year Italian bond climbed to 0.984%
from 0.926%. Yields rise when prices fall.
The pan-continental Stoxx Europe 600 index rose 0.6%, led by
banks and the automotive sector.
In European equity markets, U.K. medical-equipment company Smith
& Nephew fell 8.7% after its chief executive said he would step
down at the end of the month.
Wirecard rose 6.8% in German trading after the electronics
payment company said it commissioned an auditing firm to look into
allegations made in a report in the Financial Times about its
accounting practices.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
October 21, 2019 09:17 ET (13:17 GMT)
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