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GLOBAL MARKETS-Stocks rise despite lackluster results; sterling creeps up as EU delays Brexit decision

Published 23/10/2019, 21:47
© Reuters.  GLOBAL MARKETS-Stocks rise despite lackluster results; sterling creeps up as EU delays Brexit decision
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* Brexit developments still in focus

* Sterling recovers

* Texas Instruments revenue forecast hits chipmakers

(Updates with closing U.S. markets levels)

By Caroline Valetkevitch

NEW YORK, Oct 23 (Reuters) - World stock indexes climbed on

Wednesday as investors brushed aside some earnings

disappointments, while the British pound inched up as European

Union leaders delayed a decision on whether to grant Britain a

three-month Brexit extension.

Shares of U.S. industrial bellwethers Boeing Co BA.N and

Caterpillar Inc CAT.N ended the day up about 1% each despite

big earnings misses.

Results have helped to shift investor focus toward earnings

in recent sessions.

"It's all about earnings at this time, and today we had

mixed earnings reports," said Peter Cardillo, chief market

economist at Spartan Capital Securities in New York.

But the market still ended higher because, for the most

part, "investors were already braced for that," he said.

With results now in from about 125 of the S&P 500 companies,

analysts still expect earnings to have declined 2.9%

year-over-year, according to IBES data from Refinitiv.

Some areas of equities stayed weak, including an index of

semiconductor shares .SOX . It fell 1.9% following a

weak-than-expected revenue forecast from Texas Instruments

TXN.O .

Sterling stabilized from Tuesday, when it dropped after

British lawmakers again put the brakes on the government's plans

to exit the European Union. EU member states on Wednesday delayed a decision on whether

to grant Britain a three-month Brexit extension. Prime Minister

Boris Johnson said if the deadline is deferred to the end of

January, he would call an election.

"After the slide in sterling we saw yesterday, we are

actually seeing a bit of a stabilization this afternoon," said

Shaun Osborne, chief foreign exchange strategist at Scotia

Capital.

Sterling GBP= was last trading at $1.2915, up 0.33% on the

The Dow Jones Industrial Average .DJI rose 45.85 points,

or 0.17%, to 26,833.95, the S&P 500 .SPX gained 8.53 points,

or 0.28%, to 3,004.52 and the Nasdaq Composite .IXIC added

15.50 points, or 0.19%, to 8,119.79. The pan-European STOXX 600 index .STOXX rose 0.11% and

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

0.13%. In commodity markets, oil jumped after government data

showed a surprise draw in U.S. crude stocks.

U.S. crude CLcv1 climbed 2.7% to settle at $55.97, while

Brent LCOcv1 rose 2.5% to $61.17.

In the U.S. bond market, benchmark 10-year notes US10YT=RR

last fell 1/32 in price to yield 1.7695%, from 1.766% late on

Tuesday.

World FX rates in 2019 http://tmsnrt.rs/2egbfVh

Emerging markets in 2019 http://tmsnrt.rs/2ihRugV

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