European Markets Open Mixed in Reaction to New Concerns Over Brexit

According to pre-market reports, European traders are assessing the news that European Union leaders shelved plans for a special summit to complete a Brexit deal next month.
James Hyerczyk
Brexit

European stocks are expected to open mixed Thursday, following the lead of Wall Street and Asia. The Fed minutes released late Wednesday are already history with European traders moving on to fresh news about Brexit.

According to pre-market reports, European traders are assessing the news that European Union leaders shelved plans for a special summit to complete a Brexit deal next month.

The early focus for traders on Thursday is expected to be the ongoing Brexit talks, as negotiations over Britain’s departure from the EU remain at an impasse. Despite the creeping pessimism, U.K. Prime Minister Theresa May remains confident that a deal could be completed in a timely manner, assuring EU leaders that both sides could still strike a deal.

EU leaders continue to be frustrated at the lack of progress in the negotiations. The main sticking point on Wednesday was that Britain failed to offer any new proposals to unlock the vexed Irish border question.

Asian Markets

Asian stocks were mostly lower on Thursday with traders taking their cues from Wall Street, which also failed to produce gains. Investors were largely influenced by the Federal Reserve minutes which indicated the Fed will remain on its path toward more rate hikes. The markets have priced in a December 2018 rate hike, but they have yet to price in the possibility of three more rate hikes in 2019 as outlined in the September Fed monetary policy statement.

Stocks in Japan may have also been pressured by a report showing Japan’s exports fell in September for the first time since 2016 as shipments to the United States and China declined, adding to concerns about the broadening impact of an escalating Sino-U.S. trade war. Losses may have been limited by the possibility that shipments were impacted by natural disasters that may have caused a huge disruption on supply chain, industry production and transport in September.

U.S. Markets

The major U.S. stock indexes tumbled across the board on Wednesday in a volatile two-sided trade. Early in the session, prices were driven lower by a plunge in shares of IBM, which fell nearly 7 percent in the pre-market trade. Prices were further pressured by weaker-than-expected housing data.

The indexes recovered from earlier weakness shortly ahead of the release of the Fed minutes, but quickly turned lower when the summary of the central bank’s September meeting showed policymakers were leaning toward more rate hikes moving forward.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US