European Stock Markets to Trade Mixed Amid Brexit Developments, Earnings Releases
Arslan Butt • 1 min read
European stock markets seem to be having a mixed day of trading at the start of a fresh week, weighed by corporate earnings even as they await a key decision on Brexit extension. Eu leaders are meeting in Brussels and could announce their decision to possibly grant Britain a three-month extension on the Brexit deadline till January 31, 2020.
Global stock markets received a boost at the end of the previous week on optimistic comments from the US and China on progress towards the “Phase 1” trade deal. Asian markets also closed in the green earlier today, and some of the spillover effect of this announcement is likely to impact European markets as well.
However, optimism in stock markets remain pressured by the earnings season which is underway. Earlier today, HSBC reported that its pre-tax profits had declined by 18% YoY in Q3. The weakness in global economic growth has caused the bank to revise its 2020 profit targets lower as well, and even caution markets of a possible impending corporate restructuring towards recovering from this dip.