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GLOBAL MARKETS-Pound down vs dollar after PM calls for election; S&P 500 gains

Published 24/10/2019, 21:58
© Reuters.  GLOBAL MARKETS-Pound down vs dollar after PM calls for election; S&P 500 gains
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* Sterling weaker vs dollar; PM calls for election

* S&P 500, Nasdaq end up but Dow down

* Tesla shares jump, Microsoft gains

(Updates with closing U.S. markets levels)

By Caroline Valetkevitch

NEW YORK, Oct 24 (Reuters) - The British pound fell against

the dollar on Thursday after British Prime Minister Boris

Johnson's call for a national election, while global stock

markets edged higher.

Johnson said he was asking Parliament to approve the

election for Dec. 12 in an effort to break the country's

deadlock over its exit from the European Union. Trading in Sterling was choppy following the news but the

currency recovered from session lows. Sterling GBP= was last

trading at $1.2846, down 0.54% on the day. The dollar index

benefited from the move in sterling, last up 0.16% against a

basket of rival currencies at 97.65 .DXY .

EU member states on Wednesday delayed a decision on whether

to grant Britain a three-month Brexit extension. Third-quarter earnings reports took center stage again on

Wall Street, where stocks ended mostly higher.

Upbeat earnings - including from Microsoft MSFT.O - offset

disappointing results from Twitter TWTR.N and others.

Investors also are trying to gauge the fallout from a prolonged

U.S.-China trade war, which has already shown up in the domestic

economy.

"Right now we're seeing disparity in moves of the indexes.

And that's due primarily to the flow of earnings announcements

as they surprise to the upside and disappoint to the downside,"

said Bucky Hellwig, senior vice president at BB&T Wealth

Management in Birmingham, Alabama.

"If consensus is building that a trough is occurring" in

quarterly earnings changes, he said, that could end up being a

positive for the stock market.

The latest estimate for third-quarter earnings for companies

on the benchmark U.S. S&P 500 index improved slightly. Earnings

now are expected to have declined 2.3% year-over-year in the

quarter versus an estimated decline of 2.9% on Wednesday,

according to IBES data from Refinitiv.

Tesla TSLA.O shares rallied a day after the company

reported an unexpected third-quarter profit. The Dow Jones Industrial Average .DJI fell 28.42 points,

or 0.11%, to 26,805.53, the S&P 500 .SPX gained 5.77 points,

or 0.19%, to 3,010.29 and the Nasdaq Composite .IXIC added

66.00 points, or 0.81%, to 8,185.80.

The S&P 500 briefly moved lower after comments from U.S.

Vice President Mike Pence, who accused China of curtailing

"rights and liberties" in Hong Kong but also insisted that the

United States does not seek confrontation or to "de-couple" from

its main economic rival. The pan-European STOXX 600 index .STOXX rose 0.59% and

MSCI's gauge of stocks across the globe .MIWD00000PUS gained

0.37%.

Results from German companies including Daimler DAIGn.DE

helped to boost Europe's indexes. In commodities markets, oil prices rose as a surprise drop

in U.S. crude inventories and the prospect of further

market-supporting action by OPEC and its allies offset some

concern over the outlook for demand. U.S. crude CLcv1 climbed 26 cents to settle at $56.23 a

barrel, while Brent LCOcv1 rose 50 cents to settle at $61.67.

U.S. Treasury yields edged higher after trading lower for

much of the session. Investors consolidated positions ahead of

next week's Federal Reserve monetary policy meeting that is

expected to result in an interest rate cut for a third time this

year. Benchmark 10-year notes US10YT=RR last fell 4/32 in price

to yield 1.7713%, from 1.759% late on Wednesday.

Asia stock markets https://tmsnrt.rs/2zpUAr4

Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA

Inflation, unemployment during the Draghi era https://tmsnrt.rs/2IXunV6

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