Edition:
United Kingdom

Chuck Mikolajczak

Stocks flat on data, earnings; pound volatile

16 Oct 2019

NEW YORK A gauge of world stock markets was flat on Wednesday as U.S. data that raised concerns about a slowing economy was offset by a solid start to earnings season, while sterling was volatile as negotiations on a Brexit deal continued.

GLOBAL MARKETS-Stocks flat on data, earnings; pound volatile

16 Oct 2019

* Brexit negotiations resume in Brussels * Pound volatile around Brexit talks * Wall Street little changed (Updates With close of European markets) By Chuck Mikolajczak NEW YORK, Oct 16 A gauge of world stock markets was flat on Wednesday as U.S. data that raised concerns about a slowing economy was offset by a solid start to earnings season, while sterling was volatile as negotiations on a Brexit deal continued. On Wall Street, stocks retreated after monthly retail sales data for September showed a decline for the first time in seven months, stoking concerns softness in the manufacturing sector was starting to spread to the broader economy. "Retail sales were definitely on the weaker side and given that the consumer is one of the key pillars holding up the U.S. economy, any weakness in consumer indicators is obviously a sign of concern," said Ellen Hazen, portfolio manager F.L. Putnam in Wellesley, Massachusetts. Data later in the session showed business inventories were unexpectedly flat in August, which suggested inventory investment could also drag on third-quarter economic growth. Concerns about the trade dispute between the U.S. and China also weighed. The U.S. House of Representatives on Tuesday passed legislation related to pro-democracy protests in Hong Kong, prompting China to warn in response that bilateral relations would be damaged if the measures became law. Losses were offset by a solid start to earnings season. Bank of America shares rose 1.98% following its quarterly results. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, according to Refinitiv data, down from 5.1% growth expected at the start of the year. "They legitimately are coming in better than expected so far, not by leaps and bounds, but incrementally, yes they are. This is not just expectations having been set really low, at least from the earnings estimate standpoint," said Hazen. The Dow Jones Industrial Average fell 9.03 points, or 0.03%, to 27,015.77, the S&P 500 lost 6.52 points, or 0.22%, to 2,989.16 and the Nasdaq Composite dropped 30.31 points, or 0.37%, to 8,118.40. Sterling was volatile as negotiators worked to clinch a last-minute deal for Britain's exit from the European Union before an EU summit on Thursday. French President Emmanuel Macron said on Wednesday a deal with Britain on its departure from the European Union was being finalized and could potentially be agreed on at Thursday's summit. The pound had strengthened by more than 5% over the past five sessions as investors rushed to reprice the prospect of a last-minute Brexit deal before the Oct. 31 deadline. Sterling was last at $1.2824, up 0.30% on the day. The dollar index, tracking the currency against six major peers, fell 0.26%, with the euro up 0.33% to $1.1067. European stocks closed slightly lower as they contended with the conflicting reports on Brexit talks and the dawn of earnings season, holding within a tight range during the session. Companies listed on the STOXX 600 index are now expected to report a decline in third-quarter earnings of as much as 3.7%, worse than the 3% expected a week ago, according to Refinitiv data through Tuesday. In commodities, oil lost ground on concerns demand could be hurt by a slower economy, along with forecasts of a further climb in U.S. inventories. U.S. crude rose 1.17% to $53.43 per barrel and Brent was last at $59.43, up 1.17% on the day. In emerging markets, Turkey's Halkbank saw its shares drop 4.1% after U.S. prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade U.S. sanctions on Iran, which the company said were part of sanctions leveled against Ankara over its military operation in Syria. Overall emerging market stocks rose 0.44%. (Additional reporting by Karen Brettell; Editing by Bernadette Baum and Kirsten Donovan)

GLOBAL MARKETS-Stocks little changed on data, earnings; pound choppy

16 Oct 2019

* Brexit negotiations resume in Brussels * Pound volatile around Brexit talks * Wall Street little changed (Updates to open of U.S. markets, changes dateline; previous LONDON) By Chuck Mikolajczak NEW YORK, Oct 16 A gauge of world stock markets was little changed on Wednesday on the heels of U.S. data that raised concerns about a slowing economy, while sterling was volatile as negotiations on a Brexit deal continued. On Wall Street, stocks edged lower after monthly retail sales data for September showed a decline for the first time in seven month, stoking concerns softness in the manufacturing sector was starting to affect the broader economy. "The retail sales figures were pretty disappointing across the board," said Benjamin Jeffery, a rates strategist at BMO Capital Markets in New York. Data later in the session showed business inventories were unexpectedly flat in August, which suggested inventory investment could also drag on third-quarter economic growth. Concerns about the trade dispute between the U.S. and China also weighed. The U.S. House of Representatives on Tuesday passed legislation related to pro-democracy protests in Hong Kong, prompting China to warn in response that bilateral relations would be damaged if the measures became law. Losses were offset by a solid start to earnings season. Bank of America shares rose 2.42% following its quarterly results. Earnings for S&P 500 companies are expected to show a decline of 3% for the quarter, according to Refinitiv data, down from 5.1% growth expected at the start of the year. The Dow Jones Industrial Average fell 7.6 points, or 0.03%, to 27,017.2, the S&P 500 gained 0.45 points, or 0.02%, to 2,996.13 and the Nasdaq Composite dropped 8.37 points, or 0.1%, to 8,140.34. Sterling was was volatile as negotiators worked to clinch a last-minute deal for Britain's exit from the European Union before an EU summit on Thursday. European Council President Donald Tusk said on Wednesday it should be known in seven or eight hours when Brexit could happen and in theory, a deal could be accepted on Thursday. The pound had strengthened by over 5% over the past five sessions as investors rushed to reprice the prospect of a last-minute Brexit deal before the Oct. 31 deadline. Sterling was last at $1.2796, up 0.08% on the day. The dollar index, tracking it against six major peers, fell 0.1%, with the euro up 0.15% to $1.1047. European stocks were modestly lower as they contended with the Brexit talks and the dawn of earnings season, holding within a tight range on the session. Companies listed on the STOXX 600 index are now expected to report a decline in third-quarter earnings of as much as 3.7%, worse than the 3% expected a week ago, according to Refinitiv data through Tuesday. In commodities, oil lost ground on concerns demand could be hurt by a slower economy, along with forecasts of a further climb in U.S. inventories. U.S. crude rose 1.04% to $53.36 per barrel and Brent was last at $59.24, up 0.85% on the day. In emerging markets, Turkey's Halkbank saw its shares drop after U.S. prosecutors charged the state-owned lender with taking part in a multibillion-dollar scheme to evade U.S. sanctions on Iran, which the company said were part of sanctions leveled against Ankara over its military operation in Syria. Before Turkish markets opened, authorities banned short selling on seven large Turkish bank stocks, including Halkbank. Selling shares in the banks only to buy them later in the session was also banned, authorities said. Overall emerging market stocks rose 0.35%. (Additional reporting by Karen Brettell; Editing by Bernadette Baum)

RPT-Stocks on tenterhooks as U.S. recession signs build

03 Oct 2019

NEW YORK, Oct 3 A wake-up call from the U.S. heartland has spooked Wall Street by raising fears of a recession that will push equities into a correction.

Stocks on tenterhooks as U.S. recession signs build

03 Oct 2019

NEW YORK A wake-up call from the U.S. heartland has spooked Wall Street by raising fears of a recession that will push equities into a correction.

RPT-Stocks on tenterhooks as U.S. recession signs build

03 Oct 2019

NEW YORK, Oct 3 A wake-up call from the U.S. heartland has spooked Wall Street by raising fears of a recession that will push equities into a correction.

U.S.-listed China shares, indexers, fall after delisting reports

27 Sep 2019

NEW YORK Shares of Chinese stocks traded in the United States, along with indexing companies, slumped on Friday after reports the Trump administration was considering delisting Chinese firms from U.S. stock exchanges and limiting U.S. investment in China-based securities.

U.S.-listed China shares, indexers, fall after delisting reports

27 Sep 2019

NEW YORK Shares of Chinese stocks traded in the United States, along with indexing companies, slumped on Friday after reports the Trump administration was considering delisting Chinese firms from U.S. stock exchanges and limiting U.S. investment in China-based securities.

Global stocks fall as Trump impeachment talk grows; sterling up after Brexit ruling

24 Sep 2019

NEW YORK A gauge of global stocks fell for a third day on Tuesday as a push by some Democrats for the impeachment of U.S. President Donald Trump gained momentum, and the British pound strengthened after the UK Supreme Court ruled Prime Minister Boris Johnson's decision to suspend parliament was unlawful.

GLOBAL MARKETS-Stocks lower as Trump impeachment talk swirls; sterling gains after Brexit ruling

24 Sep 2019

* S&P 500 index falls as Trump impeachment rumblings increase

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