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

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Stocks little changed on data, earnings; pound choppy
Credit: © Reuters.

* 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 (Reuters) - 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. 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. were offset by a solid start to earnings season. Bank of America (NYSE: BAC ) BAC.N shares rose 2.42% following its quarterly results. 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 .DJI fell 7.6 points, or 0.03%, to 27,017.2, the S&P 500 .SPX gained 0.45 points, or 0.02%, to 2,996.13 and the Nasdaq Composite .IXIC dropped 8.37 points, or 0.1%, to 8,140.34.

Sterling was GBP= 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. 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 GBP= was last at $1.2796, up 0.08% on the day.

The dollar index .DXY , tracking it against six major peers, fell 0.1%, with the euro EUR= 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 .STOXX 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. crude CLcv1 rose 1.04% to $53.36 per barrel and Brent LCOcv1 was last at $59.24, up 0.85% on the day.

In emerging markets, Turkey's Halkbank HALKB.IS 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. 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. emerging market stocks rose 0.35%. Global assets in 2019 Global currencies vs. dollar MSCI All Country Wolrd Index Market Cap


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