European stocks under pressure of disappointing earnings

European stocks fell on Wednesday, affected by a decline in banking stocks after the release of disappointing business results from HSBC, while investors awaited consumer sentiment data in the euro zone.

According to Reuters, the banking services sector fell by one percent. HSBC shares fell 7.2% and is heading to suffer its largest losses in one day since March 2020, after its annual profits fell short of analysts’ expectations, as the increase in its income was eliminated by the rise in interest rates, in exchange for a huge cost of three billion dollars due to the valuation of… His stake in a Chinese bank.

The broader European STOXX 600 index fell 0.3 percent by 0820 GMT.

Among other influential factors, JDE Beat’s expectations for increased organic sales in 2024 came in at the lower end of its medium-term target, pushing its stock down 4%.

Glencore shares fell 4.1%, leading to a 0.8% loss in the basic resources sector, as the mining company announced disappointing business results and reduced dividends to investors.

On the data front, investors are awaiting February data on the euro zone consumer sentiment index, which is scheduled to be released at 1000 GMT, while the US Federal Reserve will issue the minutes of its January meeting later on Wednesday.