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Tuesday 22 Oct 2019 , 1:32 pm

Earnings Weigh on European Stocks, Sterling Lower Before Brexit Votes

European shares edged lower on Tuesday as talk of progress in China-U.S. trade talks was offset by mixed corporate earnings, while sterling retreated ahead of another vote on Brexit.
By SIN Bureau
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The broad European STOXX slipped 0.3%, and MSCI’s world equity index, which tracks shares in 47 countries, was flat at 0.02% lower. French speciality minerals company Imerys slipped 6% after cutting its outlook for 2019, and Norway’s Aker BP moved marginally lower as it slashed its full-year oil output target.

British household goods maker Reckitt Benckiser was stranded at the base of the STOXX index with a 5% fall after it cut its full-year sales forecast for the second time this year.

In Switzerland, drugmaker Novartis raised its 2019 target and reported better-than-expected revenue, while Apple supplier AMS climbed 6% as demand from smartphone makers boosted operating profit.

Shares of UBS led gains among banking stocks .SX7P after Switzerland’s biggest bank reported a smaller than expected loss in quarterly profit.

Swedish defence firm Saab gained 7% to lead the STOXX 600 after reporting third-quarter operating earnings well ahead of market forecasts and affirming its view that operating cashflow this year would improve versus 2018.

“This week is an important week for earnings,” said Andrew Milligan, head of global strategy at Aberdeen Standard Investments. “We’ve seen a lot of talk on Brexit and trade talks and the new news is the earnings and the signal they give for the future. We’ve broadly priced in that earnings will be slightly positive for the year, but everyone is seeing how monetary policy stabilises the situation.”

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Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.

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