INTERNATIONAL - European shares retreated on Monday as a glum profit outlook from the region’s largest lender HSBC offset gains in trade-sensitive sectors buoyed by positive developments on the US-China trade front.
The pan-European STOXX 600 index fell 0.2 percent at 0935 GMT with the banking index .SX7P leading the losses.
Asia-focused lender HSBC slipped 4 percent to the bottom of the benchmark index after it dropped its 2020 profit target, and said it would undertake a costly restructuring as the bank struggled amidst a slowing global environment.
Another disappointment among banks was Spain’s Bankia, down 3 percent, after the state-owned lender posted a 23 percent drop in third-quarter net profit as it struggles to increase margins from lending because of ultra-low interest rates.
“HSBC did cite weakness, but that’s not massively unexpected given what’s going on the wider growth dynamics,” said Will James, senior investment director, European equities at Aberdeen Standard Investments.