The Dow Jones Global Indexes closed at 27,025.88 by rising of 23.9 points (+0.09%). The Standard & Poor’s (S&P) 500 index rose 8.26 points (+0.28%) to close at 2,997.95. The Nasdaq Composite Index rose 32.67 points (+0.40%) to close at 8,156.85. The continued profit momentum and hopes of the Brexit agreement have boosted the main indexes. Both Netflix and Morgan Stanley reported quarterly results that exceeded analysts’ expectations. This resulted in a better-than-expected performance since the start of the quarter. FactSet data shows that nearly 80% of the S&P 500 companies that have reported results so far have exceeded analysts’ expectations. Prime Minister Boris Johnson said market sentiment was also boosted after the UK and the EU reached a “new Brexit agreement.” Netflix shares rose 2.47%, as the company’s third-quarter earnings benefited by the growth of strong international subscribers. As the quarterly results of Morgan Stanley, which rose 1.52% were driven by strong trading and consulting revenues. Both American Express and Coca-Cola will report on Friday. Additionally, investors will look forward to any progress in Brexit.
On Thursday after 11th-hour talks, there are doubts that the Brexit deal will be approved by lawmakers of UK in Westminster. After the UK made a concession to the Irish border, news of the rise in the pound came out, which proved to be the biggest obstacle to reaching a deal. The pound rose 0.8% against the dollar to $1.2929, a five-month high. Soon, the British pound against the dollar fell sharply as the British opposition expressed concern. Jean-Claude Juncker, European Commission President called the agreement ” balanced and fair.”
EU leaders also approved the “Withdrawal Agreement” at the summit on Thursday. The deal still needs to pass UK legislators at the weekend. The European Parliament must also approve the transaction on a date that has not yet been determined. After the agreement was announced, Michel Barnier, the EU’s chief UK Brexit negotiator, said the deal was the outcome of intense effort between the negotiating teams. He said: “We delivered it together.”