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.
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.
Equities advanced and oil retreated on October 27 as investors assessed diplomatic efforts over the Middle East conflict. Corporate earnings and upcoming central bank decisions were also in focus, with Europe’s STOXX 600 gaining 0.1% and futures for the S&P 500 rising 0.2% and the Nasdaq 0.3%.
Brent crude surrendered an earlier increase to trade at $114.74 a barrel, down 1%. Iranian state media said the country’s supreme leader and security chief discussed pursuing Iran’s interests and conditions for ending the war. Representatives of Saudi Arabia, Turkey and Pakistan were also in Tehran for diplomatic efforts.
HSBC shares dropped 6.7% after July-September revenue fell short of expectations as growth in its wealth business slowed. Pretax profit met estimates. Among U.S. companies reporting results, Coca-Cola and United Parcel Service lifted their forecasts, while Hilton and JetBlue reported higher costs linked to the conflict.
Investors were awaiting earnings from Microsoft, Amazon and Alphabet for evidence of returns on their AI spending. Microsoft fell 0.8% before U.S. trading opened, while Amazon and Alphabet posted small gains.
Economists expected the Federal Reserve, European Central Bank and Bank of Japan to leave interest rates unchanged at their upcoming meetings. Traders nevertheless priced in a Fed increase in December as inflation concerns persisted.
The euro declined 0.2% to $1.114. The U.S. 10-year Treasury yield held at 4.974%, while spot gold fell 0.1% to $4,010.96 an ounce.