In European Equity Markets the pan-European Stoxx 600 ended lower by 1.15%, with autos trading down 1.45 % on the back of a profit warning from Renault, while basic resources added 0.33%. French automaker Renault cut its 2019 revenue outlook and profit forecasts citing slowdowns in Turkey and Argentina. Renault shares fell 11.68% Friday to drag the rest of the European automotive sector into the red. At the top of the Stoxx 600, Swedish medical technology company Getinge rose16% after its third-quarter profit exceeded expectations.

 

In Currency Markets the pound held steady on Friday ahead of Saturday’s vote on the Brexit deal approved at the European Union summit. Sterling lost initial gains after British Prime Minister Boris Johnson’s new deal was approved by the EU as relief that a no-deal Brexit could be off the table succumbed to doubts as to whether the deal will win parliamentary approval. After gaining as much as 6% against the dollar in the previous six days, the pound moved in a relatively narrow range, holding near five-month highs of $1.2872.

 

In Commodities Markets oil prices steadied on Friday, with countervailing signals from China’s economy and refining sector balancing each other out, while hopes rose for progress toward a U.S.-China trade agreement after optimistic signals emerged from negotiations. Benchmark Brent crude oil futures fell 37 cents to $59.54 a barrel. U.S. West Texas Intermediate (WTI) crude futures were unchanged at $53.93 a barrel. Brent was on track to lose 1.5% for the week, while WTI was set to fall 1.4%.

 

In US Equity Markets indices struggled for direction on Friday as upbeat earnings reports calmed nerves about the global economy after China expanded at its weakest pace in almost 30 years, with Johnson & Johnson also weighing on the blue-chip Dow index. Coca-Cola Co shares gained 1.7% after the beverage maker beat analysts’ expectations for quarterly sales. Shares of E*Trade Financial Corp rose 5.8% after the online broker posted better-than-expected quarterly profit and revenue.

 

In Bond Markets Euro zone bond yields rose on Friday, a day before the British parliament is due to vote on whether to approve an agreement on the United Kingdom’s departure from the European Union. Yields have generally pushed higher since Irish and British leaders said on Oct. 10 they saw a path to a Brexit deal, boosting risk appetite and weakening demand for safe-haven assets such as bonds. In late Friday trade, 10-year benchmark bond yields were around 2 basis points higher on the day.

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