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Monday, November 19, 2018

European markets edge higher despite Brexit turmoil; Renault shares tank 11%

European stocks were slightly higher Monday morning, amid lingering uncertainty surrounding the U.K.'s future relationship with the European Union.

The pan-European Stoxx 600 was up around 0.23 percent during mid-morning deals, with most sectors and major bourses in positive territory.

Europe's basic resources stocks led the sectoral gains Monday morning, up around 1 percent amid conflicting signals over global trade tensions. President Donald Trump said Friday that Washington could be prepared to "make a deal" with China when it comes to trade. However, White House officials have since said market participants should not read too much into speculation.

Looking at individual stocks, Denmark's Novo Nordisk surged toward the top of the European benchmark shortly after the opening bell. It comes after J.P. Morgan raised its stock recommendation for the firm to "overweight," adding it was upbeat on the Copenhagen-listed company's growth outlook. Shares of Novo Nordisk were nearly 3 percent higher on the news.

Meanwhile, Renault slumped to the bottom of the index after a Japanese newspaper reported Nissan chairman, Carlos Ghosn, could be arrested for alleged financial trading violations. Shares of the carmaker tanked over 11 percent lower Monday morning. CNBC could not independently verify the report.

Investors continue to err on the side of caution as turmoil surrounding Brexit shows no signs of alleviating. Last week, the British currency saw sharp losses, as a series of resignations called into question the state of the U.K. government and the future of a Brexit deal.

Over the weekend, Prime Minister Theresa May told Sky News that a change in Britain's leadership would only delay the proceedings, after a number of politicians expressed concern over the current state of affairs, including the proposed agreement.

Scotland's First Minister Nicola Sturgeon told the BBC that it would be "deeply irresponsible" if parliament endorsed May's deal, adding that her party's members of parliament (MPs) would vote against it.

On the data front, investors will monitor construction output and current account figures during early morning deals on Monday.

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