|Day's range||7,146.11 - 7,197.14|
|52-week range||6,536.50 - 7,727.50|
Brexit is no easier to write about than to invest around. When writing about the London market it is impossible, however, to avoid Brexit. The past three-plus years have trained investors to always view the UK as divided between domestic earners and exporters.
The FTSE 100 company, which owns the Crowne Plaza and Holiday Inn brands, said that overall revenue per available room — the industry’s preferred metric — fell 0.8 per cent in the three months to the end of September. For Greater China, the drop was 6.1 per cent, due to a 36 per cent fall in “revpar” in Hong Kong. Pro-democracy protests in Hong Kong have escalated since they started in spring and this week, the city’s chief executive Carrie Lam declared that Hong Kong was in a “technical recession”.
The pan-European STOXX 600 index closed down 0.1% after gaining as much as 0.9%, as investors initially cheered news that the European Union and Britain had clinched a deal on the terms of Britain's exit from the bloc. Shares in domestically focused British companies and Irish firms, which have come to be seen as a barometer on Brexit sentiment, gave up gains as the Northern Irish Democratic Unionist Party (DUP) said it would vote against the accord at an extraordinary session on Saturday. The FTSE midcap index closed up just 0.16%, while Irish stocks dropped 0.9% amid doubts over whether Prime Minister Boris Johnson will be able to win the British parliament's approval for any deal.
Investing.com -- There's a Brexit deal in the offing, although it still needs to be approved by a recalcitrant British parliament. The pound and other U.K. and European assets are responding with enthusiasm. Elsewhere, Netflix (NASDAQ:NFLX) is set for a pop after stronger-than-expected earnings in the third quarter, even though subscriber growth again fell short of expectations. There are also regular updates on U.S. industrial production and the housing market, while oil is struggling after a big build in U.S. crude stocks last week. Here's what you need to know in financial markets on Thursday, 17th October.
Top women executives called for legal quotas for females in the boardroom at an FT summit on Thursday in an uncompromising push to improve gender equality at UK listed companies. Inga Beale, former head of Lloyd’s of London, and Tiina Lee, Deutsche Bank’s UK and Ireland chief executive, demanded the moves at the FT’s Women at the Top Conference in the capital.
FT subscribers can click here to receive Market Forces every day by email. Politics remained a principal driver of market sentiment on Wednesday. A look at 30-year bond yields suggests a bottom has formed since hitting mid-August lows.
The FTSE 250 , which had rallied more than 3% since last week on hopes that Britain could clinch a timely divorce deal, fell 0.9%. Traders are eyeing a crunch summit this week after last-ditch talks between London and the European Union. Barratt , Britain's largest housebuilder, gave up 3.7%, while peers Persimmon and Taylor Wimpey lost around 3% each.
Investing.com -- Bank of America (NYSE:BAC) leads a parade of more financial earnings, after JPMorgan (NYSE:JPM) stood out among a mediocre set of results from Wall Street on Tuesday. Drug wholesalers are in talks to settle opioid-related claims for $18 billion, while the hoped-for Brexit deal has hit a roadblock. Here's what you need to know in financial markets on Wednesday, 16th October
JP Morgan's UK domestic plays index , which tracks about 30 UK stocks that make all or most of their revenue at home, rose 1%. Britain and the European Union are set for crunch Brexit talks at a summit on Thursday and Friday, with Prime Minister Boris Johnson intent on delivering Brexit on Oct. 31 and the EU still looking for further concessions.
FT subscribers can click here to receive Market Forces every day by email. Corporate earnings, economic data and central bank tidings face a tough time eclipsing the primetime dramas of trade and Brexit for investors. What links the big issues of trade friction and Brexit is how slowing economic activity (duly challenging the outlook for corporate earnings) instils a sense that deals must be struck at some point, and hopefully before the macro climate turns decidedly wintry.
The pound enjoyed its best week since 2017 last week after British Prime Minister Boris Johnson and Irish counterpart Leo Varadkar said they could see "a pathway" for an agreement for Britain to leave the European Union by Oct. 31. While Brexit has cast a cloud over world markets since the June 2016 referendum resulted in a narrow win for Leave, some assets are particularly sensitive to headlines and will show an outsized reaction, whatever the outcome of the talks. Sterling's exchange rate has been by far the most sensitive price to Brexit newsflow.
The FTSE 250 ended slightly off the day's lows but still shed 0.6%, handing back part of the more than 4% gain it had recorded in the previous session which was its best in nearly a decade. Britain and the European Union said over the weekend that a lot more work would be needed to secure a Brexit agreement. JP Morgan's UK domestic plays index , tracking about 30 UK stocks that make all or most of their revenue at home, pulled back nearly 1%.
Europe’s stock markets were brought down to earth on Monday by Chinese data that showed how much economic activity has slowed reminding participants that it will need more than grand words and handshake deals to revive a global economy hobbled by various trade-related uncertainties.
Investors pounced on everything from banks like RBS to housebuilders and retailers such as Kingfisher , which owns DIY chain B&Q, after British Prime Minister Boris Johnson and his Irish counterpart, Leo Varadkar, said they had found "a pathway" to a possible Brexit deal. The buying spree targeted some of the market's most beaten-down stocks and those considered most vulnerable to a downturn in consumer spending if the country crashes out of the European Union without a deal.
The FTSE 100 ended 0.3% higher, after flipping back and forth during the day on mixed signals over the state of affairs between Beijing and Washington, while the midcap index that has a greater UK exposure also rose by the same level. Spirits company Diageo , consumer goods giant Unilever and AstraZeneca were among stocks hammered the most, causing the FTSE 100 to lag other major indexes. Stocks vulnerable to a hit from Brexit, on the other hand, overpowered those losses.
Hopes of deals around the world gave global markets that Friday (October 11) feeling. Asian shares jumped after a first day of trade talks between U.S. and Chinese delegates. Donald Trump described the discussions as "very very good", and has agreed to meet with China's top trade negotiator. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent. The bullish market mood continued in Europe. The pan-European STOXX 600 climbed 0.5 percent with shares in Frankfurt up 0.8 percent. Germany's SAP helped with that. Its shares jumped 7.4 percent after the world's leading enterprise software firm pre-released strong Q3 results, as well as news that its CEO is stepping down after a decade at the helm. Bill McDermott is handing the task of completing SAP's transition to cloud computing to new co-CEOs Jennifer Morgan and Christian Klein. It ends an an era in which McDermott struck a string of multi-billion-dollar deals. They built SAP into Europe's leading technology group, but also created complexity that frustrated many clients. Tech sector shares were up 2.5 percent - touching a two-month peak. There was respite from Brexit gloom too. Irish Prime Minister Leo Varadakar said on Thursday (October 10) that a Brexit deal could be clinched by the end of October. That followed a meeting in the UK with Boris Johnson. Bucking the trend though was London's FTSE 100. It shed 0.3 percent as shares of export reliant firms took a beating from a firm sterling.