European Stocks Edge Down Ahead of Brexit Vote
October 22 2019 - 5:37AM
Dow Jones News
By Anna Isaac
Stocks across Europe edged lower Tuesday 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 pan-continental Stoxx Europe 600 index ticked down 0.3%,
with investors also assessing the health of businesses in the
region as they evaluated third-quarter results. 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.
The British pound was flat against the dollar as lawmakers
prepared to cast a vote on a divorce agreement with the European
Union. 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 2.9 basis points to minus 0.370%,
while the yield on the U.K. 10-year gilt ticked down to 0.729%.
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%.
Earnings season continues in the U.S. with a range of household
names reporting early 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.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
October 22, 2019 05:22 ET (09:22 GMT)
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