European stocks fall for first session in 3 as Brexit woes weigh

Economies.com
2019-10-23 12:04PM UTC

The major European stocks indices fell during the morning sessions on Wednesday, for the first time in the last 3 sessions, as the Brexit woes field investors' risk aversion, amid the uncertainty surrounding the Brexit, especially after the British lawmakers rejected the fast-track timetable to conclude the legislative process of PM Johnson Brexit agreement with the European Union.

 

Stoxx Europe 600 fell by 0.4% as of 11:27 GMT, while it closed higher by 0.1% yesterday in its second straight daily gain after the automotive sector advanced.

 

The index opened today's session lower, to head for its first daily loss in the last 3 days, with most of the major European exchanges and sectors falling.

 

The Tech sector saw the largest losses in Europe today, with a drop of more than 0.8%, on dim forecasts for the earnings reports of major European companies.

 

The British Parliament voted on Tuesday initially in favor of Johnson's Brexit plan with the EU, however, it rejected the prime minister's fast-track timetable to conclude legislative process in 3 days and demanded a longer period in order to examine the legislation.

 

While the focus is now turning to the EU as the matter is now in its hands to decide on an additional 3-month deadline extension beyond October 31, which is what the European Council President Donald Tusk urged the European leaders to do.

 

Should the EU agree on the extension to January 31, Johnson could then call for a general election in a bid to strengthen the Conservative Party majority and his mandate.

 

S&P 500 futures fell by 0.2%, as it closed lower by 0.4% yesterday at Wall Street, on profit taking from a 5-week peek.

 

To the European stock markets, the Euro Stoxx 50 index fell by 0.5%, while in France the CAC 40 was the saw the largest losses in Europe with a drop by 0.7%, and in Germany the DAX index shed 0.1%.

 

While in London, the FTSE 100 went in the opposite direction of the downtrend in Europe and rose by 0.25%, due to the British pound drop against a basket of currencies.

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