Boeing and Brexit drama are hitting market sentiment
- Boeing's shares were down 1.3% in pre-market trading after slumping 6% yesterday
- Asian and European stocks and US futures lost ground after British Prime Minister Theresa May's Brexit deal was resoundingly rejected by Parliament.
- The British pound has swung between $1.33 and $1.30 this week as the Brexit drama has unfolded.
Shares in Boeing slid 1.3% in premarket trading on Wednesday after slumping 6% yesterday, as European and Indian regulators joined their peers in grounding Boeing 737 Max 8 aircraft after the model was involved in two lethal crashes in the space of five months.
Asian stocks were down as traders reacted to global growth fears. The resounding defeat of British Prime Minister Theresa May's Brexit deal in Parliament on Tuesday added to gloomy sentiment, leaving European shares broadly flat.The pound pared its losses as currency traders were optimistic that the possibility that Britain crashes out of the EU without a deal looks more remote.
"This is all very messy - there is not clear and clean way out of this - leaving uncertainty and caution the order of the day for sterling and other UK assets," said Neil Wilson, chief markets analyst at markets.com.
Boeing's stock has lost more than $40 billion of market value from its 2019 peak, with two days of selling wiping out $26 billion of market value. More than a dozen airlines as well as the governments of UK, China, Indonesia, Australia, and Singapore have grounded Boeing's 737 Max planes after the crash of Ethiopian Airlines Flight 302 on Sunday, which killed all 157 people on board.
The British pound has swung between $1.33 and $1.30 this week as the mood keeps shifting.
Parliament will vote later today on whether to leave the EU with no deal. If the vote fails, lawmakers will vote Thursday on whether to extend the Brexit deadline on Thursday.
"We expect volatility in the pound to ease back today as it finds comfort in the prospect of avoiding a no deal and Article 50 being extended," said Jasper Lawler, head of research at London Capital Group.
Here's the roundup as of 8.50 a.m. (4.50 a.m. EST):
- Asian stocks closed lower with the SZSE Component Index down 2.5%, the Shanghai Composite Index down 1.1%, and Hong Kong's Hang Seng down about 0.5%.
- European markets are mixed with the the Euro Stoxx 50 up 0.25%, while the FTSE 100 and DAX are almost flat.
- US stocks are also mixed with Dow futures down 0.05%, while S&P 500 and Nasdaq futures are trading slightly higher.