Stocks edge higher and oil falls as investors weigh Middle East diplomacy
Brent crude fell 1% to $114.74 a barrel, while investors awaited major technology companies’ earnings and decisions from three central banks.
HSBC revenue miss pulls European banks lower
The STOXX 600 declined 0.2% as investors awaited U.S. technology earnings and policy meetings at three major central banks.
HSBC lost 7% on October 27 after quarterly revenue fell short of expectations, pushing European banking shares lower. The sector's STOXX 600 index dropped 1.3%, while the broader European benchmark fell 0.2%.
Slower expansion in HSBC's wealth business contributed to the July-September revenue miss, though pretax profit met estimates. The lender's share decline was the main drag on Britain's FTSE 100, which shed 1%.
Investors were awaiting results from U.S. technology companies as they assessed corporate exposure to higher costs and interest rates linked to the Iran conflict. More than a third of S&P 500 constituents were due to report during the week, with attention on whether AI investments by Microsoft, Amazon and Alphabet were delivering the expected returns.
Economists anticipated no rate changes at the upcoming meetings of the Federal Reserve, European Central Bank and Bank of Japan. Policymakers' remarks were set to receive close attention for clues about future decisions. Traders were pricing a 25 basis point Fed rate increase in December, according to CME Group's FedWatch Tool.
In other markets, the euro fell 0.1% to $1.115, while the yield on the U.S. 10-year Treasury note was unchanged at 4.986%. Brent crude rose 0.6%, reaching $116.82 per barrel. Gold in the spot market fell 0.6% to $3,992.70 per ounce.