European Shares Rise on Brexit Deal Announcement

October 17, 2019
European Shares

By Investors Hub

European stocks have recovered from a lackluster start to edge higher on Thursday after the U.K. and EU announced they have agreed on a deal for Britain’s exit from the EU.

EU Commission President Jean-Claude Juncker said in a letter that member nations should back the Brexit deal and that the 27 member states are “best served by an orderly and amicable withdrawal of the United Kingdom from our Union.”

The U.K.?s FTSE 100 Index has advanced by 0.9 percent and the German DAX Index has risen by 0.3 percent, although the French CAC 40 Index has edged down by 0.1 percent.

Swedish telecoms gear maker Ericsson has moved sharply higher after its quarterly core earnings came in well ahead of expectations.

Shares of Unilever have also rallied despite the consumer products company delivering weaker than expected third quarter sales.

WH Smith has also soared after it reached an agreement to acquire Marshall Retail Group, a U.S. travel retailer, for $400 million on a cash and debt-free basis.

On the other hand, spirits maker Pernod Ricard has tumbled after its quarterly organic sales missed expectations.

Rathbone Brothers shares have also slumped. The provider of investment and wealth management services reported that total net inflows were 0.1 billion pounds in the third quarter, down from last year’s 7.0 billion pounds, largely reflecting the acquisition of Speirs & Jeffrey.

Moneysupermarket.com Group has also shown a substantial move to the downside after revenue growth in the third quarter slowed.

In economic news, U.K. retail sales remained flat in September, data from the Office for National Statistics showed.

Retail sales volume, including auto fuel, was unchanged from the previous month following a 0.3 percent drop in August. Sales were forecast to fall 0.2 percent.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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