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UPDATE 2-European stocks subdued by mixed corporate earnings and Brexit

Published 10/23/2019, 01:09 AM
Updated 10/23/2019, 01:09 AM
UPDATE 2-European stocks subdued by mixed corporate earnings and Brexit

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Just Eat jumps 22% on Prosus bid
* FTSE 100 outperforms as pound weakens
* UK lawmakers vote at 1800 GMT on Brexit bill

(Updates with closing prices)
By Sruthi Shankar and Medha Singh
Oct 22 (Reuters) - Mixed earnings reports kept a lid on
European stocks, with London's midcap index suffering from
doubts over whether British lawmakers will back the government's
Brexit bill on Tuesday.
The pan-European STOXX 600 .STOXX finished up just 0.1%,
with a weaker pound helping London's exporter-laden FTSE 100
.FTSE outperform with a 0.7% gain. Others including Germany's
DAX .GDAXI and France's CAC 40 .FCHI were marginally higher.
The FTSE 100 was also lifted by a 24% jump in food delivery
firm Just Eat JE.L after Dutch internet conglomerate Prosus
PRX.AS made an unsolicited $6.3 billion cash bid. But British household goods maker Reckitt Benckiser RB.L
hit its lowest level in more than seven months after cutting its
full-year sales forecast for a second time this
year. French specialty minerals company Imerys IMTP.PA dropped
13% after cutting its 2019 outlook, while Norway's Aker BP
AKERBP.OL slipped 0.9% as it slashed its full-year oil output
target.
"We expect it to be a weak quarter and have already priced
that in because we are seeing a slowdown in the macro outlook,"
said Aneeka Gupta, associate director of research at WisdomTree.
Last week, the world's biggest yoghurt maker Danone
DANO.PA had cut its 2019 sales growth target, while auto maker
Renault RENA.PA and truckmaker Volvo VOLVb.ST issued dour
profit forecasts amid a broad-based slump in auto sales.
Britain's midcap index .FTMC and Irish stocks .ISEQ ,
gauges of Brexit sentiment, fell 0.6% and 1.1%, respectively,
although they both hovered near one-year highs after British
Prime Minister Boris Johnson clinched a last-minute deal with
the European Union last week.
Johnson told the parliament on Tuesday that if it delayed
his Brexit legislation he would abandon his attempt to ratify
the deal and push for an election instead. Lawmakers vote at around 1800 GMT on the 115-page Withdrawal
Agreement Bill and then vote on the government's extremely tight
timetable for approving the legislation.
Banking stocks were flat on the day, after Swiss bank UBS
UBSG.S reported a 16% slide in third-quarter net profit and
cut high-paying investment banking staff after a disappointing
performance at the division. Automakers gained 0.8%, led by gains in Continental
CONG.DE after the German engineering group booked 2.5 billion
euros ($2.8 billion) in impairments, citing slower automobile
production growth, and said it will spin off its powertrain
division rather than float it. (Editing by Alexander Smith)

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