EUROPE MARKETS: HSBC Results Cast Pall Over European Stocks
2019年10月28日 - 07:36PM
Dow Jones News
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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