Stocks in Europe mixed amid gloomy economic outlook

Stocks in Europe opened mixed Thursday morning, after EU leaders agreed to delay Brexit for up to six months.

The pan-European Stoxx 600 edged slightly lower shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

Earnings dominated the European morning trade. French hospitality firm Sodexo’s shares gained 4 percent after it reported strong 2018 results and stuck to its financial goals for this year.

Luxury brand LVMH also surged towards the top of the index, after the company said Wednesday evening that its sales for 2019 so far rose by 11 percent year-on-year. Shares of the Paris-listed firm were up more than 3 percent.

At the other end of the scale, shares of Italian manufacturer Prysmian lost more than 7 percent after Reuters reported the company would review its 2018 earnings amid long-term technical difficulties and damage claims.

Market focus is largely attuned to Brexit developments, after talks between EU leaders and British Prime Minister Theresa May culminated in a “flexible extension ” of the U.K.’s departure from the bloc until Oct. 31.

Donald Tusk, president of the European Council, said this development provides extra time for the “U.K. to find the best possible solution.”

Sterling hovered around the flatline against the dollar on Thursday morning, while the U.K.’s FTSE 100 index edged into negative territory.

Elsewhere, European and U.S. banks reinforced investor worries about slowing global economic growth and trade protectionism on Wednesday.

The European Central Bank (ECB) kept its loose monetary policy stance and warned that threats to world economic growth remained.

The central bank has already delayed its first post-crisis interest rate hike and President Mario Draghi raised the prospect of further supportive policy measures if a slowdown in the euro zone economy persisted.

Meanwhile, minutes from the latest meeting of policymakers at the Federal Reserve showed they had agreed to be patient about any changes to interest rate policy.

On the data front, the International Energy Agency (IEA) will publish its closely-watched oil market report at around 9:00 a.m. London time.

Source: CNBC