|Day's Range||7,177.83 - 7,242.37|
|52 Week Range||6,536.50 - 7,727.50|
European stocks climbed to two-week highs on Tuesday, as investors cheered comments from the European Union's chief Brexit negotiator that a deal with Britain over the terms of their divorce was still possible this week. The pan-European STOXX 600 index rose 0.5% in early deals with London- and Dublin-listed stocks leading gains and all but one of the 21 European industry subsectors rising. Retail company shares rose 1.2% to their highest level since May, while travel and leisure gained 1.1% to hit a one-year high.
This week will be critical for the British currency, which may result in increased volatility of sterling both downwards and upwards. Right now, positive market sentiment supported by hopes for approval of the UK exit from the EU.
Global stocks traded cautiously higher Tuesday, while U.S. equity futures pointed to a firmer open on Wall Street, as investors prepped for a two-day wave of bank earnings that could define the third quarter reporting season while paring risk positions amid lingering questions over the fate trade talks between Washington and Beijing.
Investors took no chances upon hearing the news. Besides driving stocks lower and erasing some of Friday’s gains, hedgers drove December Treasury Notes 0.46% higher. December Comex gold futures rose 0.73% and the Japanese Yen jumped 0.24% higher. These protection moves are likely to increase if investors continue to turn sour on the deal.
Europe’s stock markets were brought down to earth on Monday by Chinese data that showed how much economic activity has slowed reminding participants that it will need more than grand words and handshake deals to revive a global economy hobbled by various trade-related uncertainties.
Global stocks traded mostly lower Monday, while U.S. equity futures suggested modest gains to start the week on Wall Street, as investors parsed through the thin details of last week's trade truce between Washington and Beijing and prepped for the start of the third quarter earnings season that could define market direction between now and the end of the year.
It is a big week ahead, with corporate earnings, trade talks, Brexit and economic data in focus. There’s also the IFM meetings and the EU Summit.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.K. domestic stocks may shake off their pariah status as beaten-down banks, housebuilders and retailers would be the biggest winners if the U.K. and European Union agree a deal on Brexit before the U.K. is scheduled to leave the bloc on Oct. 31.After a red-letter day for U.K.-exposed stocks on Friday amid signs of progress in talks, all eyes turn to next week’s EU Summit. The U.K.’s FTSE 250 index closed the week 4.2% higher, posting its best day since May 2010.“If there was a Brexit deal, political uncertainty would be reduced, sterling would appreciate, and that would be naturally positive for U.K. domestics and negative for international companies,” Matthew Hall, portfolio manager at Allianz Global Investors, said in an interview, adding that housebuilders and U.K. banks should see the biggest gains.With a crucial few days ahead, here’s a roundup of some of the biggest stock-market winners -- and losers -- if a Brexit deal is clinched:U.K. BanksU.K. high street lenders have been among the stocks hardest hit by Brexit uncertainty, and analysts at Citigroup Inc. predicted in August that a no-deal scenario could cut their earnings by as much as 25%.Both Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc’s shares surged on Friday. RBS -- the “poster child” of no-deal risk fears, according to Bloomberg Intelligence’s Jonathan Tyce -- rallied as much as 16%, the most in almost a decade.Even after Friday’s jump, RBS shares are still down about 13% since the referendum, while Lloyds is down about 18%. A deal would clarify the risk around small and medium-size enterprise lending, Tyce said in a note, while also preventing a Labour victory in any potential election as well as further rate cuts by the Bank of England.U.K. MidcapsSmaller U.K. companies would also benefit from a deal. This summer saw a string of British companies warn of the impact Brexit will have on their businesses, including firms such as recruitment agency PageGroup Plc, car dealer Pendragon Plc and property firm Savills Plc, while Thomas Cook Group Plc, a stalwart of the travel world, went bankrupt.Among other FTSE 250 members, Dixons Carphone Plc and Card Factory Plc have been hit by the slowdown in spending weighing on Britain’s high street, and are down 70% and 51% respectively since the Brexit vote. The worst-performer in the Index, subprime lender Provident Financial, has shed more than 80% as more customers have struggled to repay while it grapples with U.K. regulatory probes into its lending practices.HomebuildersBritish housebuilders have been under pressure amid Brexit uncertainty and Morgan Stanley predicted last month that the group could gain 20% if a deal was reached, or drop 18% in a no-deal scenario.Crest Nicholson Holdings Plc, which focuses on London and the surrounding commuter areas, has plummeted 31% since the referendum, while FTSE 100 member Taylor Wimpey Plc, also with big operations in the capital, has dropped about 15%.“We believe Taylor Wimpey is best-placed amongst U.K. housebuilders to gain from a post-Brexit market bounce back,” HSBC Holdings Plc’s Brijesh Siya wrote Oct. 9, citing the company’s strategy of building large sites and its potential to cut costs.RetailersU.K. retailers have suffered as consumers curtailed spending amid uncertainty about how the economy would fare. The FTSE 350 General Retailers Index is down about 20% since the Brexit referendum.With more clarity, consumer and business confidence would both rise and the whole retail sector would benefit, Shore Capital analyst Clive Black said. Supermarkets would feel the impact of a stronger pound more quickly than non-food retailers, given they have shorter lead times on buying products from overseas, with Marks & Spencer Group Plc and Tesco Plc likely among the biggest beneficiaries.UtilitiesUtilities investors have been hoping to avoid a Jeremy Corbyn government. The Labour leader has vowed to nationalize swathes of Britain’s water and energy firms, along with the railways and postal group Royal Mail Plc.If a Brexit deal increases the Conservative Party’s chances of winning an election, that could be positive for the sector. RBC Europe analyst John Musk wrote last month that an election would be a chance to scrutinize Labour’s “unchecked rhetoric” on the sector.National Grid Plc and United Utilities Group Plc are among the utilities stocks to watch. They’re down 17% and 10% respectively since the 2016 vote.ExportersOn the other hand, if a deal is cemented, the resulting gain in the pound may negatively impact exporters to the U.S., which have benefited from the currency’s weakness against the dollar. Analysts at Morgan Stanley said in August that U.K. drugmakers GlaxoSmithKline Plc and AstraZeneca Plc would benefit from a no-deal scenario and could see their valuations lowered by 8% and 11%, respectively, if a deal is reached.A strong pound is also negative for Diageo Plc, which slumped as much as 4% on Friday. Every 1% move against the dollar is worth about 0.5% of the London-based beverage giant’s earnings per share, Jefferies analyst Ed Mundy said in an email.Other stocks to watch include British American Tobacco Plc, Reckitt Benckiser Group Plc and Victrex Plc.To contact the reporters on this story: Kit Rees in London at firstname.lastname@example.org;Joe Easton in London at email@example.com;Erin Roman in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Celeste Perri at email@example.com, Beth MellorFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- It’s that Friday feeling. The mood is turning decidedly upbeat in the market, with glimmers of hope for two sagas that have plagued European stocks this year -- trade talks and Brexit.As the week began, equities were coming off the worst slump since August, the trade war was heating up with the U.S. blacklisting Chinese tech giants, and U.K. Prime Minister Boris Johnson had deemed a Brexit agreement by the end of the month “essentially impossible.” Fast forward to Friday, and equities are poised for their biggest weekly rally since mid-March.The Stoxx Europe 600 Index traded 1.9% higher as of 4:02 p.m. CET, the biggest gain since January. Despite the rout at the start of October, the gauge is now less than 1% away from a one-year high reached last month. The coming days will confirm whether investors’ optimism is warranted, and provide catalysts for further stock market moves.“The slightest glimmer of hope literally gives the stock market wings and all worries and crises seem to have been forgotten,” Andreas Lipkow, strategist at Comdirect Bank, said by phone. “It remains to be seen if the very high expectations can be met. As after any big party, the headache on the following morning can be equally painful.”The gains were even more pronounced for U.K.-domestic stocks, boosted by hopes the U.K. may reach a deal with the EU on Brexit. The pound has been surging since Irish Premier Leo Varadkar said Thursday that he believed an agreement is possible by the Oct. 31 deadline, following two-and-a-half hours of “constructive” talks with Prime Minister Boris Johnson. On Friday, EU Chief Negotiator Michel Barnier recommended that detailed talks can begin in earnest.The FTSE 250 was up 3% on Friday, the most since July 2016, with Royal Bank of Scotland Group Plc jumping 16% and Marks & Spencer Group Plc climbing 11%. The FTSE 100, home of multinationals such as BP Plc and GlaxoSmithKine Plc, was only up 0.5%, hurt by the rally in the pound.“What we see today is mostly short-covering in cyclical sectors and financials,” said Markus Steinbeis, managing director at asset manager Steinbeis & Haecker in Munich, adding that the rally could last for a little while, given the attractive valuations and the significant underweight in these value stocks among investors.The September fund manager survey from Bank of America showed the U.K. has been the least-favored region by investors in terms of equity allocation globally. The poll showed that overall, a net 30% of fund managers said they were underweight U.K. stocks, 1.2 standard deviations below the long-term average.On the trade war front, the second day of U.S.-China negotiations kick off on Friday after U.S. President Donald Trump said the first day had gone “very well.” It’s the first senior-level in-person talks since late July to attempt to end an 18-month standoff. Trade-sensitive sectors including autos and miners were surging, with Volkswagen AG up 3.5%, Daimler AG up 2.5%, and ArcelorMittal up 4.8%.Uwe Becker, co-CIO of Shareholder Value Management, remained skeptical about the overall market rally, however. “The reason for this upward move is lacking the facts. We haven’t heard any details on trade talks or Brexit besides the comments that talks are ‘going well,’ hence the move lacks substance to me.”To contact the reporters on this story: Namitha Jagadeesh in London at firstname.lastname@example.org;Jan-Patrick Barnert in Frankfurt at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, John ViljoenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The European Union says it has agreed with the United Kingdom to "intensify" Brexit negotiations in a belated attempt to reach a divorce deal ahead of Oct. 31, when Britain is scheduled to leave the bloc. The EU announcement came after EU Council President Donald Tusk vowed that the 27 nations would make another push for a deal following a constructive meeting between British Prime Minister Boris Johnson and his Irish counterpart, Leo Varadkar. EU negotiator Michel Barnier and Brexit Secretary Stephen Barclay already laid the groundwork for intensified talks earlier on Friday. The pound rallied for a second day on growing hopes for a deal.
Hopes for progress in trade talks between the U.S. and China as well as the U.K. and the European Union’s Brexit negotiations gave a lift to European stocks on Friday.
The British pound rose above $1.25 on Friday as European Council President Donald Tusk tweeted that Ireland's Leo Varadkar conveyed "promising signals" that a deal was possible. Tusk did say the U.K. still not has come forward with a workable, realistic proposal. "Even the slightest chance must be used. A no deal Brexit will never be the choice of the EU," he tweeted.
European shares were boosted on Friday by advancing shares of SAP after its long term CEO stepped down, while upbeat rhetoric surrounding U.S.-China trade talks and Brexit also brightened the mood. The pan-European STOXX 600 climbed 0.5% at 0705 GMT, with shares in Frankfurt rising 0.8% - the most among its peers. SAP shares pushed the technology sector 2.5% higher, touching a two-month peak.
Wall Street futures traded firmly higher Friday, while global stocks booked solid gains as investors returned to risk markets, following reports of a better-than-expected day one meeting between U.S. and Chinese trade officials that could potentially unlock the year-long dispute between the world's two biggest economies.
The FTSE 100 was higher on Wednesday as trade tensions between the U.S. and China appeared to ease ahead of crunch talks in Washington.
The Dow Jones Industrial Average appears set for a higher open despite rising tensions between the U.S. and China on the eve of crucial trade talks in Washington.
Stocks gained on Wednesday as investors clung to hopes that the United States and China could yet agree some sort of trade deal, while the prospect of a last-minute Brexit agreement between the European Union and Britain seemed as remote as ever. Markets have begun October in a nervous mood, and this week has seen investors dump stocks on concern the U.S.-China conflict over trade and foreign policy is nowhere near a resolution and is increasingly damaging the global economy. With a little more than three weeks until Britain is scheduled to leave the EU, both sides launched into a blame game over the lack of agreement on the terms of their divorce, giving investors more to worry about.
Hopes of deals around the world gave global markets that Friday (October 11) feeling. Asian shares jumped after a first day of trade talks between U.S. and Chinese delegates. Donald Trump described the discussions as "very very good", and has agreed to meet with China's top trade negotiator. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent. The bullish market mood continued in Europe. The pan-European STOXX 600 climbed 0.5 percent with shares in Frankfurt up 0.8 percent. Germany's SAP helped with that. Its shares jumped 7.4 percent after the world's leading enterprise software firm pre-released strong Q3 results, as well as news that its CEO is stepping down after a decade at the helm. Bill McDermott is handing the task of completing SAP's transition to cloud computing to new co-CEOs Jennifer Morgan and Christian Klein. It ends an an era in which McDermott struck a string of multi-billion-dollar deals. They built SAP into Europe's leading technology group, but also created complexity that frustrated many clients. Tech sector shares were up 2.5 percent - touching a two-month peak. There was respite from Brexit gloom too. Irish Prime Minister Leo Varadakar said on Thursday (October 10) that a Brexit deal could be clinched by the end of October. That followed a meeting in the UK with Boris Johnson. Bucking the trend though was London's FTSE 100. It shed 0.3 percent as shares of export reliant firms took a beating from a firm sterling.