Stocks – U.S. Futures Jump as Brexit Deal Reached

This post was originally published on this site
© Reuters. © Reuters. – U.S. futures were higher on Thursday after the European Union and U.K. announced they had reached a deal on Brexit, dispelling fears of a disorderly and economically damaging rupture at the end of the month.

rose 33 points or 0.4% by 6:42 AM ET (10:42 GMT), while gained 111 points or 0.4% and S&P 500 futures were up 11 points or 0.4%.

The deal, by European Union Commission President Jean-Claude Juncker and U.K. Prime Minister Boris Johnson and enlarged upon at a briefing by the EU’s top negotiator Michel Barnier, suggests that the most controversial elements of the negotiations – including future trade relations between the two sides and the future of Northern Ireland, have been postponed to a later date.

However, Northern Ireland’s Democratic Unionist Party said it remains opposed to the proposed agreement, making it uncertain if the deal will be passed by the U.K. Parliament when it votes on Saturday.

The deal hinges on Northern Ireland applying a limited set of EU rules on some goods, with the U.K. only charging EU tariffs on goods passing through to EU markets. Northern Ireland will also maintain the right to vote every four years if the arrangements will stay.

Reuters cited the U.K. Labour Party as saying it would back the deal, subject to a confirmatory referendum.

Reuters cited the U.K. Labour Party as saying it would back the deal, subject to a confirmatory referendum.

Meanwhile in the U.S., third-quarter earnings and a flurry of economic data remained in focus.

Netflix (NASDAQ:) surged 7.8% in premarket trade after it added 6.8 million new customers last quarter, a strong improvement from earlier in the year. It also generated more profit than expected.

IBM (NYSE:) tumbled 4.6% after its revenue came in lower than expected, while Carnival (NYSE:) dipped 0.5%. Honeywell (NYSE:) fell 0.7% after its revenue fell short of forecasts, even as earnings beat expectations.

, s, , and the for October are all released at 8:30 AM ET. data is set to come out later in the session.

In commodities, fell 0.3% to $1,489.95 a troy ounce, while the , which measures the greenback against a basket of six major currencies, dipped 0.3% to 97.455. were down 0.5% to $53.12 a barrel.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.