2024-10-29 23:33:29 :
(Bloomberg) — European stocks fell on Tuesday after disappointing results from heavyweights BP Plc and Novartis AG, as traders assessed growing markets ahead of a key week for stocks. risk.
The Stoxx Europe Stoxx Index gave up earlier gains and closed down 0.6%, with travel and leisure stocks, automobiles and energy stocks the biggest decliners.
Earnings sparked some of the sharpest moves, with Novartis becoming the biggest drag on the benchmark index after the drugmaker reported disappointing sales growth for some key drugs. BP was also under pressure, with the oil major falling after reporting an increase in net debt.
Banking stocks were the bright spot, with HSBC Holdings PLC rising after it announced a US$3 billion stock buyback as profits exceeded expectations. Santander Bank Polska SA was another gainer, rising after strong earnings momentum in the third quarter.
European stocks have been range-bound for much of the past month as investors face too much risk. In the UK, focus will be on Wednesday’s budget and expected tax hikes and spending cuts, while traders will also focus on euro zone inflation data due later this week.
At the same time, there is only one week left before the US presidential election, and the winner of the US presidential election is still difficult to determine.
“The U.S. election is likely to be the main catalyst for where European stocks go next,” said Hani Redha, global multi-asset portfolio manager at PineBridge Investments. “Given the current economic stagnation in the euro zone, this driver could be decisive. ”
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—With assistance from Sagarika Jaisinghani.
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