The pan-European Stoxx 600 index kicked off the trading day with a 0.2% decline in early deals. While bank stocks faced a 0.9% downturn, the retail sector saw a 0.5% uptick.
Early trading witnessed a sharp decline of 6.7% in the shares of HSBC, following the announcement of an 80% plunge in pre-tax profits during the final quarter of 2023. This significant drop was attributed to a $3 billion charge related to its stake in a Chinese bank.
In contrast, Hong Kong stocks surged over 3%, leading the gains in the wider Asia-Pacific markets, which displayed a mixed performance overnight following losses on Wall Street the previous day. Investor sentiment remained cautious as they evaluated Japan’s trade data and the deteriorating business sentiment among large manufacturers.
Meanwhile, U.S. stock futures showed a slight decline on Tuesday night, as the major indices faced a second consecutive day of losses, primarily driven by a downturn in Nvidia’s stock performance.
“HSBC’s Annual Pre-Tax Profit Soars 78% but Falls Short of Market Projections”
HSBC disclosed on Wednesday a robust increase in its full-year 2023 pre-tax profit, surging approximately 78% to $30.3 billion compared to the previous year. However, this figure missed the median estimates of $34.06 billion, as reported by analysts tracked by LSEG.
Following the announcement, HSBC’s Hong Kong shares relinquished earlier gains, experiencing a decline of over 2%. This contrasts with the Hang Seng Index, which recorded gains of 3%. Despite a modest 0.5% increase in its shares since the beginning of the year, HSBC saw a significant jump of 23% in 2023, while the Hang Seng Index declined by 14%.
As of the latest trading session, HSBC’s shares were down by 2.55%.
“Amidst mounting inflation and rising interest rates, the real estate sector faces notable challenges. However, market analysts see a potential turnaround on the horizon.
Kevin Brown, a senior equities analyst at Morningstar, believes it’s an opportune moment to consider real estate investments, especially with forecasts indicating a decline in interest rates over the next 12 months.
Brown, joined by Rick Romano from PGIM Real Estate, unveils their top picks for REIT investments in the current market climate.”
“Seeking Steady Income? Wall Street Suggests Investing in High-Yield Dividend Stocks”
“For investors seeking consistent passive income alongside long-term growth, dividend stocks present an attractive option.
Experts on Wall Street and beyond offer insights into identifying strong dividend stocks and highlight names expected to deliver sustainable income.
According to BofA, some of these stocks are forecasted to offer higher yields than cash, presenting compelling opportunities for income-focused investors.”
“European Markets: Opening Calls for Wednesday”
“As Wednesday begins, European markets anticipate a mixed start.
The UK’s FTSE 100 index is projected to open unchanged at 7,718. Germany’s DAX is expected to dip by 12 points to 17,061, while France’s CAC is forecasted to decrease by 3 points to 7,796. Italy’s FTSE MIB is set to open lower by 18 points at 31,786, according to data from IG.
Today’s earnings reports include updates from Danone, Wolters Kluwer, Heathrow, BAE Systems, Rio Tinto, and Glencore. Additionally, preliminary consumer confidence data for the euro zone in February is scheduled for release.”