European Stocks Off to Weak Start Amid Brexit Uncertainty
By Avantika Chilkoti
European stocks wavered Monday as investors wait to see if U.K.
Prime Minister Boris Johnson will succeed in his call for general
The pan-continental Stoxx Europe 600 index drifted down 0.2%,
led lower by banks. HSBC Holdings was the biggest loser in Europe,
shedding 4% after the bank dropped its main financial target and
said it would speed up plans to revamp its U.K., U.S. and European
The U.K.'s FTSE 100 gauge dropped 0.3% as Mr. Johnson urged
lawmakers to support his push for a Dec. 12 general election as a
way to clear a path to Brexit. EU leaders agreed to a three-month
extension to the Brexit deadline, extending the political
uncertainty until Jan. 31. The British pound was mostly flat
against the dollar.
Meanwhile, U.S. stock futures tied to the Dow Jones Industrial
Average edged up 0.2%.
The yield on 10-year Italian government debt rose to 0.991% from
0.948% Friday following preliminary results from local elections
this weekend. The results will allow center-right political leaders
to campaign against the current administration in a bid to boost
their popularity, according to analysts at UniCredit. The FTSE MIB
index for Italian equities fell 0.2%.
Asian markets had a stronger start to the week. The Shanghai
Composite Index gained almost 0.9% and Hong Kong's benchmark Hang
Seng Index gained 0.8%.
The yield on 10-year Treasurys rose to 1.826%, its highest level
since mid-September as investors, anticipate the Federal Reserve
will deliver another 25 basis point cut.
"Recent softer U.S. data would justify the cut," Barclays
analysts said in a note to clients. "However, the temporary easing
of global risks reduces the need for further insurance, and the Fed
could signal more willingness to follow a "meeting-by-meeting"
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
October 28, 2019 06:14 ET (10:14 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.