European stock markets rose mostly on Tuesday (25).
The market’s focus is on the corporate balance sheet agenda, mainly of large banks, and on the expectation of the monetary policy decision of the European Central Bank (ECB), on Thursday (27).
Data from Germany and the inauguration of the new UK Prime Minister were also on the radar.
The pan-European Stoxx 600 index closed up 1.34% at 407.224 points.
Britain’s HSBC, Europe’s largest bank by market value, reported a 46% annual decline in third-quarter profit. In addition, company revenue declined 3% on the same comparative basis.
HSBC shares fell 6.83% in London, putting pressure on the FTSE 100 index, which closed down 0.01% at 7,013.48 points.
The UBS Group, meanwhile, said its third-quarter profit and revenue exceeded expectations. In Zurich, the Swiss bank’s share rose 7.73%.
According to Michael Hewson of CMC Markets, “It was a largely positive day for markets in Europe, with the exception of the FTSE100, which lagged behind due to weakness in banks and basic resources.”
In an interview with CMC Markets, forex trading mentor Patrick Reid states that to navigate rough waters, banks will have to focus on their strengths.
“Banks need to do a lot more of what they do well, even better, leaner and hedge against more volatility with a stronger dollar and lack of fiscal credibility within the government,” Reid said. He cites that
There are three key factors at play: a strong dollar, the fallout from September’s calamitous mini-budget and the looming stagflation in the UK.
In Germany, the Ifo business sentiment index fell far less than expected this month, to 84.3 points. In the United Kingdom, Sunak formally took over as prime minister and confirmed, in a statement, that Jeremy Hunt will continue as finance minister.
Hunt came to the post in the brief administration of Liz Truss, to try to calm the turmoil generated by the fiscal plans of the now ex-premier.
In Frankfurt, the DAX index advanced 0.94% to 13,052.96 points. On the Paris Stock Exchange, the CAC 40 index rose 1.94% to 4250.55 points.
In Milan, the FTSE MIB index advanced 1.40%, to 22,289.85 points, the highest of the day.
On the Madrid Stock Exchange, the IBEX 35 index rose 1.49% to 7,794.90 points.
The PSI index, on the Lisbon Stock Exchange, closed with a gain of 1.59%, at 5,651.70 points, also at the highest of the day.
Source: CNN Brasil

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