By Steve Goldstein, MarketWatch

Downbeat results from bank HSBC Holdings cast a pall over European stocks on Monday, as equities on the continent retreated from multi-month highs.

After finishing Friday at its highest level since January 29, 2018, the Stoxx Europe 600 declined 0.13% to 397.48.

The German DAX rose 0.07% to 12903.96, while the French CAC 40 declined 0.07% to 5718.08 and the U.K. FTSE 100 fell 0.39% to 7295.62.

U.S. stock futures , however, were a bit higher, in a week that will feature a huge number of U.S. earnings, a Federal Reserve interest-rate decision and nonfarm payrolls data.

Markets also were underpinned by relief that the European Union granted a three-month extension to Brexit. The U.K. parliament is set to vote on whether to hold an election on December 12, with the opposition Labour Party not expected to support it.

HSBC (HSBA.LN) shares fell 4% as the company said it can longer hit next year's target of an 11% return on tangible equity. The bank's profit tumbled 24% in the third quarter on what it called challenging conditions (http://www.marketwatch.com/story/hsbc-profit-misses-expectations-and-bank-warns-of-challenging-outlook-2019-10-28).

While HSBC has struggled after reporting earnings, 76 of the European companies that had released financial results for the third quarter through to Friday reported to the upside by 1.8%, according to Goldman Sachs. "We are still early in the season but it is encouraging amid the economic slowdown," said strategists at the investment bank.

Shares in LVMH Moet Hennessy (MC.FR), the luxury goods company, edged up 0.4%, in the first reaction to news it may be interested in bidding $120 per share (http://www.marketwatch.com/story/lvmh-confirms-talks-with-tiffany-over-a-potential-takeover-2019-10-28) for jeweler Tiffany (TIF).

Analysts at Equita said increasing that offer by another 10% would imply 0.5% value destruction, "acceptable in our view considering the strategic opportunity of the deal and the further growth potential LVMH could add to Tiffany," the broker said.

 

(END) Dow Jones Newswires

October 28, 2019 06:21 ET (10:21 GMT)

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