Global Stocks Tick Higher Despite Extended Brexit Uncertainty

By Caitlin Ostroff 

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. Yields rise when prices fall.

"We're going to have that kind of ebbing and flowing," said David Madden, market analyst at CMC Markets. "It's just going to be hanging around to find out what's happening."

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.

Write to Caitlin Ostroff at [e-mail]

(END) Dow Jones Newswires

October 21, 2019 05:20 ET (09:20 GMT)

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