European stocks inch higher, banks slide after HSBC warning - GulfToday

European stocks inch higher, banks slide after HSBC warning

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European shares inched higher on Monday as German stocks outperformed on the back of improving Chinese manufacturing data, but a warning from Europe's biggest lender HSBC over rising bad loans sent banking stocks lower.

The pan-European STOXX 600 index were up 0.1% at 0714 GMT, with technology, automakers and oil & gas firms leading the gains.

The exporter-heavy German bourse gained 0.6% after a private sector survey showed manufacturing activity in China expanded at the fastest pace in nearly a decade as domestic demand improved.

Euro zone manufacturing PMI data are scheduled for release at 0800 GMT. 


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However, the gains were capped as U.S. lawmkers were divided over another coronavirus stimulus package, while worries remained about a further tightening of restrictions in Europe as COVID-19 cases rose.

Banking stocks took a hit as HSBC dropped 4.4% after its half-yearly profits more than halved and the lender warned its bad debt charges could blow past a previous estimate to $13 billion this year.

France's Societe Generale also declined 2.3% as it reported a 1.26 billion euro ($1.48 billion) second-quarter loss after booking a writedown on the value of its trading business.

Siemens Healthineers was down 4.8% after the German health group said it was buying U.S. firm Varian Medical Systems for $16.4 billion. 


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