|Back to main|
European Shares Narrowly Mixed After Services Data Weighed Against HSBC Results
By: MT Newswires
European stocks were narrowly mixed as investors weighed disappointing earnings from HSBC ( HBC ) and positive data.
The Markit/CIPS purchasing managers' index climbed to 60.2 during July, up from 56.9 in June and beating expectations of a 56 reading. A reading above 50 indicates expansion.
Markit's composite purchasing managers' index for the eurozone rose to 50.5 in July from 48.7 in June. That is the first above-50 reading, signalling growth, since January 2012. It was revised up from an early estimate last month of 50.4.
In ADR news, HSBC ( HBC ) says net profit for the first half was $10.28 billion, compared with $8.44 billion in the first half of 2012. Revenue fell 7% to $34.4 billion. The results trailed forecasts for $10.57 billion, according to Bloomberg. It also warned the mainland Chinese market slowed unexpectedly in Q1, while Latin American growth eased in the first half on weak consumer consumption. HBC also said it faces a potentially "highly damaging impact" from planned European Union restrictions on bonuses.
Lloyds Banking Group Plc ( LYG ) reportedly will pay as much as 70% of profit as dividend.
The FTSE-100 was last down 0.43% at 6,619.58, the DAX down 0.1% at 8,398.38 and the CAC-40 up 0.11% at 4,049.97.