HSBC drags European shares lower; LVMH gains on merger talks

HSBC headquarters is seen at the financial Central district in Hong Kong September 6, 2017. — Reuters pic
HSBC headquarters is seen at the financial Central district in Hong Kong September 6, 2017. — Reuters pic

BERLIN, Oct 28 — European shares were inched lower today as a glum profit outlook from lender HSBC offset gains following positive developments in the US-China trade talks and Brexit.

The pan-European STOXX 600 fell 0.1 per cent at 0807 GMT and London’s FTSE 100 was down 0.4 per cent, but Germany’s DAX was up 0.2 per cent.

Asia-focused HSBC lost 3 per cent after the lender dropped its 2020 profit target and warned it would have to undertake costly restructuring, as it struggled amid a slowing global business environment.

Shares of Louis Vuitton owner LVMH gained 1 per cent after a report that the company has approached US jeweler Tiffany & Co with a US$14.5 billion (RM60.7 billion) acquisition offer.

Trade — exposed auto and mining stocks led gains among sub-sectors.

US and Chinese officials are “close to finalising” some parts of a trade agreement, officials said on Friday, while the European Union was expected approve a flexible 3-month Brexit delay. — Reuters

Related Articles