European shares dip as HSBC results weigh on banks ahead of Big Tech earnings
SPY•European shares fell, with the STOXX 600 down 0.2% and its banking sector off 1.3%, after HSBC shares slid 7% on a third-quarter revenue miss. Investors also awaited US tech earnings and policy decisions from the Federal Reserve, ECB and Bank of Japan.
1. HSBC weighs on shares
European shares slipped on Tuesday as HSBC fell 7% after third-quarter revenue missed estimates, reflecting slower growth in its wealth business; pretax profit was in line with expectations. The STOXX 600 banking sector dropped 1.3%, while the pan-European STOXX 600 lost 0.2% and London's FTSE 100 fell 1%.
2. Tech earnings in focus
More than a third of S&P 500 companies are expected to report this week, with investors watching Microsoft, Amazon and Alphabet for signs that their AI investments are producing expected returns. Anthropic's IPO filing disclosed a steep loss alongside rapid revenue growth, and the company is expected to list before the end of November. Meta Platforms' $95 billion equity fundraising also drew attention.
3. Rate decisions ahead
Economists expect the Federal Reserve, European Central Bank and Bank of Japan to leave rates unchanged this week, making policymakers' comments a focus. Traders are pricing in a 25-basis-point Fed hike in December, while the US 10-year Treasury yield was steady at 4.986%.
