The Breakfast Briefing: U.S. & Global Stocks Tick Higher Despite Extended Brexit Uncertainty

Ted

FYI: U.S. stock index futures were slightly higher Monday morning.

At around 04:25 a.m. ET, Dow futures rose 50 points, indicating a positive open of more than 76 points. Futures on the S&P and Nasdaq were both slightly higher.

The moves in pre-market trade come as investors continue to closely monitor global trade developments.

Global stocks edged higher Monday as investors awaited fresh developments on the U.K.’s divorce from the European Union, trade talks between China and the U.S., and signs of activity by major central banks.

Futures linked to the S&P 500 index ticked up 0.2% ahead of more corporate results this week. So far, third-quarter earnings have beaten analysts’ expectations, despite the slowing global economy. Oil-field-services company Halliburton is set to report later in the day.

The Stoxx Europe 600 index rose 0.3%, led by banks and the automotive sector.

The British pound wavered against the dollar after a critical vote on Prime Minister Boris Johnson’s Brexit deal was delayed. The U.K.’s FTSE 100, which tracks companies with large overseas earnings that benefit from sterling’s decline, was flat. The yield on the 10-year U.K. gilt rose to 0.774% from 0.711% Friday afternoon.

In European equity markets, shares in Prudential fell 9.1% as the British financial-services company completed the spinoff of its M&G business, leaving investors with stock in two separately listed companies. U.K. medical-equipment company Smith & Nephew fell 7.4% after its chief executive said he would step down at the end of the month.

Wirecard rose 6.6% 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.
Regards,
Ted

WSJ:

Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-20/stocks-in-asia-set-for-mixed-start-pound-slips-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-microsoft-stock-chipotle-stock-visa-stock-market-rally/

CNBC::
https://www.cnbc.com/2019/10/21/stock-market-us-china-trade-war-and-corporate-earnings-in-focus.html

Reuters:
https://uk.reuters.com/article/us-cbot-grains-braun/column-funds-extend-bullish-soybean-views-with-u-s-china-trade-deal-in-sight-idUKKBN1X00RR

U.K.
https://uk.reuters.com/article/uk-britain-stocks/uk-midcaps-recover-on-lower-risk-of-no-deal-brexit-idUKKBN1X00TQ

Europe:
https://www.reuters.com/article/europe-stocks/refile-european-shares-nudge-higher-as-brexit-tussle-continues-idUSL3N2761V5

Asia:
https://www.marketwatch.com/story/asian-markets-mixed-amid-uncertainties-on-brexit-us-china-trade-2019-10-21/print

Bonds:
https://www.cnbc.com/2019/10/21/us-bonds-treasury-yields-in-focus-as-investors-monitor-auctions.html

Currencies:
https://www.cnbc.com/2019/10/21/forex-markets-brexit-pound-in-focus.html

Oil:
https://www.cnbc.com/2019/10/21/oil-markets-oil-supply-russia-opec-in-focus.html

Gold:
https://www.cnbc.com/2019/10/21/gold-markets-brexit-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx