European Stock Markets Trading Cautiously Optimistic in Anticipation of Upcoming Brexit Vote, Earnings Reports
Arslan Butt • 1 min read
European stock markets experience a flat opening early on Tuesday in anticipation of the upcoming Brexit vote, even as some leading companies release their earnings information today. After three days of bearishness, European stocks ended Monday’s session in the green over rising optimism around a US-China trade deal and possible progress on the Brexit deal.
A debate among UK MPs is expected to begin today and last till Thursday to examine the latest Brexit deal, customs concerns, explore the possibility of a second referendum and ways to block a no-deal Brexit scenario. So far, markets remain hopeful that these discussions will lead to something fruitful and that the UK will be able to depart from the EU on October 31 with a deal in place.
Stock markets are also trading bullish over rising hopes for the US and China to finalize and sign their trade deal within a month as both sides signal that negotiations are progressing well. Trump’s optimistic remarks on the progress were seconded by China’s Vice Foreign Minister earlier today, boosting the risk-on sentiment in markets.