(Alliance News) - Stocks in London ended mixed on Friday as investors prepare for the knife-edge vote on UK Prime Minister Boris Johnson's Brexit deal in the House of Commons on Saturday.
The FTSE 100 index closed down 31.75 points, or 0.4% at 7,150.57, ending the week down 1.2%.
The FTSE 250 ended up 7.42 points at 20,228.53, ending the week up 0.7%, and the AIM All-Share closed down 1.91 points, or 0.2% at 880.73, ending the week up 1.2%.
The Cboe UK 100 ended up 0.5% at 12,145.79, the Cboe UK 250 closed flat at 18,170.29, and the Cboe Small Companies ended up 0.3% at 11,130.47.
In Paris the CAC 40 ended down 0.6%, while the DAX 30 in Frankfurt ended flat.
"When it comes to the tomorrow's all-important Brexit deal vote, traders are curtailing their positions as the vote is tipped to go down to the wire. The bullish mood that we saw during the week on the build up to the deal being brokered and announced, has now been replaced with a more cautious outlook. Mr Johnson will have a tough task getting the deal approved as he doesn't have a majority in the House of Commons, but sentiment seems to be more positive now than when Mrs May was seeking approval for her deal," said CMC Markets analyst David Madden.
The pound was quoted at USD1.2885 at the London equities close, up from USD1.2831 at the close Thursday,
"Boris Johnson heads into 'super Saturday' with the numbers very uncertain, the success of his Brexit deal based on winning over a chunk of the enemies he has on both sides of the political divide. If he fails, he is required by the Benn Act to ask the EU for an extension; he may also try and once again call for a general election. Plenty, then, to give the pound a headache come Monday morning," Spreadex analyst Connor Campbell said.
UK Members of Parliament will convene in the House of Commons on Saturday for the first time since the Falklands war in 1982 to discuss Johnson's freshly brokered Brexit deal - in an event dubbed "Super Saturday".
Johnson faces a difficult challenge to win Saturday's vote in the Commons, with the DUP - which props up Johnson's minority government - confirming they will vote against the new Brexit deal.
If the deal is rejected, Johnson will be obliged under UK law to ask Brussels for another Brexit extension, and EU summit host Donald Tusk, president of the European Council, has said in that case he would consult EU leaders.
Berenberg's Holger Schmieding commented: "Until very recently, the EU27 would have very much liked the UK to remain a member. But the times have moved on. Following a UK referendum which opponents to the EU won with claims that were partly based on fiction, and in the wake of hitherto unimaginable political turmoil in the UK during the last ten months, much of the EU27 is now endorsing the agreement for an orderly divorce.
"The EU27 will have to focus on tackling many divisive issues in the near future ranging from the next seven-year budget (2021-2027) to migration control, enlargement, EU reforms and the response to populist challenges such as those posed by Poland and Hungary. Under the current political circumstances, the new divorce deal with the UK is probably the least bad of all feasible options for the EU27."
In the FTSE 100, Royal Bank of Scotland ended the best performer, up 2.6% after JPMorgan raised the state-backed lender to Overweight from Neutral.
London Stock Exchange Group closed up 0.8% after the stock exchange operator reported a strong third quarter, with the Capital Markets unit performing well despite "challenging" market conditions.
LSEG, which earlier in October rebuffed a GBP30 billion bid from Hong Kong Exchanges & Clearing, posted a 12% increase in total income for the three months to September to GBP587 million. On a nine-month basis, LSEG's total income has risen 9% to GBP1.73 billion. Information Services revenue was up 9% to GBP230 million, and Capital Markets by 14% to GBP102 million.
Like-for-like Capital Markets revenue growth was 5%, with primary markets and fixed income trading offsetting "subdued" equity markets. LSEG is in the midst of a USD27 billion takeover of market data firm Refinitiv, and said good progress is being made. It is on track for completion in the second half of 2019.
LSEG shareholders will vote on the Refinitiv acquisition in November.
At the other end of the large cap index, InterContinental Hotels Group ended as the worst performer, down 4.6% after the hotel operator reported a reduction in third-quarter revenue amid unrest in Hong Kong and softness in some of its operating markets.
Revenue per available room, a key performance metric for the hotel industry, for the three months to the end of September was down 0.8%, hurt by "tougher" trading conditions in the US and China, and ongoing civil unrest in Hong Kong, IHG said. For the first nine months of 2019, RevPAR remained flat year-on-year.
In addition, IHG said the strengthening of the US dollar against many major currencies globally has hurt its RevPAR by a 1.9% in the third quarter, when reported at actual exchange rates.
Stocks in New York were lower at the London equities close were lower amid weak Chinese economic data and uncertainty over Brexit.
China reported growth of just 6.0% in the third quarter, its slowest rate in nearly three decades, due in part to the hit from a lengthy trade war with the US.
The DJIA was down 0.3%, the S&P 500 index 0.5% and the Nasdaq Composite 0.5%.
On the corporate front, Dow member Coca-Cola Co was up 2.8% in New York as as the soft drinks giant lifted some full-year earnings targets following increased profit in the third quarter.
Pretax income jumped 30% to USD3.09 billion from USD2.37 billion, while basic net income per share rose 36% to USD0.60 from USD0.44.
The eponymous beverage maker cited solid sales of soda and innovative products like smaller drink cans that offset the hit from a strong dollar.
For 2019 as a whole, Coca-Cola is anticipating minimum 5.0% organic revenue growth on a non-GAAP basis, and at least 12% comparable currency neutral net revenue growth. This 12% figure includes a 7% acquisitions, divestitures and structural items tailwind.
American Express was down 0.8% despite reporting a 6.1% jump on profits to USD1.8 billion and offered a fairly upbeat appraisal of the economy.
Meanwhile, trade between the US and Europe was in focus as new US tariffs on some European goods went into effect, earning a swift threat of retaliation by the European Union.
The EU's top trade official said the bloc would have no choice but to hit back after Washington imposed tariffs on a record USD7.5 billion worth of EU goods on Friday.
"We regret the choice of the US to move ahead with tariffs," European Trade Commissioner Cecilia Malmstrom said in a statement after attempts to negotiate a truce went nowhere.
"This step leaves us no alternative but to follow through in due course with our own tariffs in the Boeing case, where the US has been found in breach of WTO rules," she added.
The euro stood at USD1.1140 at the European equities close, up from USD1.1114 late Thursday.
Against the yen, the dollar was trading at JPY108.42, down from JPY108.60 late Thursday.
Brent oil was quoted at USD59.62 a barrel at the London equities close from USD59.82 late Thursday.
Gold was quoted at USD1,490.45 an ounce at the London equities close, flat against USD1,491.00 late Thursday.
The economic events calendar on Monday has Germany producer prices at 0700 BST. In addition, Bank of England policymaker Andy Haldane will speak at the joint BoE, Federal Reserve Board and European Central Bank conference in Frankfurt at 1600 BST.
The UK corporate calendar on Monday has a trading statement from industrial fastenings firm Trifast.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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InterContinental Hotels (IHG)