Europe's stocks dip after weak HSBC results, while French unrest unsettles investors

what happened

European equities edged lower on Tuesday, according to Reuters, as HSBC's disappointing earnings pulled the benchmark down even though many other corporate reports were encouraging. The London-based lender, Europe's largest bank, reported revenue below estimates, partly because its wealth management unit grew more slowly. Its shares dropped nearly 7% to a six-month low, the banking index lost 1.1%, the FTSE 100 fell 0.8%, and the STOXX 600 was down 0.1% by 0920 GMT.

In France, student leaders vowed to keep protesting despite government concessions on education, and the movement is spreading to unions and other activists. French consumer confidence fell five points to 80 in October, its lowest level since June 2013. Novartis lifted its full-year core operating income guidance, while SIG Group jumped 9.4% after raising its EBIT margin outlook.

Attention now turns to the European Central Bank's decision on Thursday. Economists polled by Reuters expect a pause, though LSEG data show a 70% chance of a tightening in December. The ECB has raised rates twice in 2026, to 2.50%, after the Iran conflict pushed oil prices higher.

why it matters

The main drivers are the weak banking result and uncertainty ahead of this week's ECB and Fed decisions. Corporate earnings remain broadly solid, but investors doubt that the strong growth seen so far will last.

market impact

European stocks and banks: weak HSBC results and caution before the ECB decision weigh on the index

• ▼HSBC shares pressure down — revenue below estimates due to slower growth in wealth management
• ▼STOXX 600 pressure down — weak banking sector and caution ahead of the ECB drag the index lower

tags

instruments