On Wednesday, the European stock markets commenced trading with a mixed outlook. The state of the market varied across different regions and indexes.
During the early hours of trading on Wednesday, the Euro Stoxx 600 index reported a decrease of 0.2 percent. Conversely, the DAX index, which tracks the Frankfurt stock exchange, witnessed a slight increase of 0.1 percent. Meanwhile, London’s FTSE 100 index experienced a decline of 0.6 percent.
Furthermore, the Paris CAC 40 index hovered near zero, with a slight decrease of 0.03 percent. The OMXS30 index, which is associated with the Stockholm stock exchange, also reported a decrease of 0.2 percent.
In other news, British bank HSBC made public its earnings report. The report showed a significant increase in the company’s full-year 2023 profit before taxes, which rose by 78 percent to a total of $30.3 billion. However, the results didn’t meet analysts’ expectations, as the forecast provided by Reuters had anticipated pre-tax earnings of 34.1 billion.
The bank’s record-breaking result was adversely affected by a $3 billion write-down concerning the Bank of Communications stake in China.
Despite the setback, the bank’s record result was bolstered by the recent rise in interest rates. However, the company’s CEO, Noel Quinn, cautioned that the era of high interest rates is nearing its end. This shift could potentially have an impact on the company’s profits and turnover in the future.
Also expected on Wednesday are earnings reports from other organizations, such as the food company Danonelt and the airport Heathrowilta.
Moreover, there will be updates regarding the development of consumer confidence in the euro area during February. According to a consensus of economists compiled by Bloomberg, it is expected that confidence would have improved to -15.5 from January’s -16.1.
Additionally, the minutes from the Fed’s last meeting are set to be published on Wednesday. Market participants are keenly awaiting this information in search of hints about the timing of the US central bank’s first interest rate cut.
Based on futures, it is projected that Wall Street will commence trading on Wednesday with a bearish opening.
