By Peter Nurse
Investing.com - European stock markets weakened Tuesday, despite higher commodity prices with HSBC weighing as the regionâ€™s largest bank illustrated the current difficulties for the sector.
At 4:10 AM ET (0910 GMT), the in Germany traded 1% lower, the in France fell 0.2% and the U.K.'s index dropped 0.1%.
HSBC (LON:) stock lost 2% after its annual profit fell sharply due to the Covid-19 pandemic, dropping 34% from a year ago to $8.78 billion.
That still beat analystsâ€™ expectations of $8.33 billion, according to estimates compiled by HSBC. However, the bank abandoned its long-term profitability target, and unveiled a revised strategy focused mainly on wealth management in Asia, underlining the tough outlook for the banking sector with interest rates at all-time lows.
However, heavily-weighted resource stocks have helped limit losses in Europe with commodity prices on a tear.
Oil prices surged Tuesday with U.S. production slow to return from the deep freeze which affected large swathes of the country last week, while both base metals, like copper, and precious metals, such as gold, have climbed sharply on the back of global recovery hopes and inflationary concerns.
futures traded 0.9% higher at $62.22 a barrel, while the international benchmark contract rose 0.9% to $64.96. were 0.1% lower at $1,806.30/oz, while were flat at $4.15/oz, not far off the all-time high set in 2011.
As a result, BHP (LON:) stock climbed 1%, Rio Tinto (NYSE:) stock gained 0.5%, BP (NYSE:) stock rose 3.2% and Shell (LON:) stock gained 1.4%.
Elsewhere, German cement-maker HeidelbergCement (DE:) stock fell 2.1% even as it posted a 6% rise in core profit for last year, while private security firm G4S (CSE:) recommended shareholders vote for Allied Universal's final offer, ending a months-long takeover battle with Canada's GardaWorld.
In economic news, the U.K. received some good news Tuesday, as the unemployed actually fell by 20,000 in January as opposed to rising by the forecast 35,000. That said, the climbed to 5.1%, the highest in nearly five years.
On Monday, British Prime Minister Boris Johnson outlined a path to take his country out of Covid-19 lockdown, in an effort to gradually reopen the battered economy, aided by one of the fastest vaccine rollouts in the world.
Across the pond, Federal Reserve Chair Jerome Powellâ€™s semi-annual before Congress, starting later Tuesday, will be of intense interest, given that the surge in bond yields represents a clear test of the Fed's commitment to keeping monetary policy loose to support the recovery.
Other relevant articles
[2021-02-23 09:35:03] European shares gain on higher commodity prices; HSBC weighs
[2021-02-23 08:40:32] European Stock Futures Higher; Resources, HSBC in Focus
[2021-02-22 10:10:22] European Stocks Lower; Caution Amid Lockdown Worries
[2021-02-22 09:40:22] European shares drop on inflation risk concerns; Lagarde speech eyed
[2021-02-22 08:30:27] European Stock Futures Lower; Lockdowns and Vaccinations in Focus
[2021-02-19 10:15:15] European Stocks Mixed; Renault Slumps
[2021-02-19 09:40:10] European shares rise on upbeat Hermes earnings; Renault slides
[2021-02-19 08:40:09] European Stock Futures Mixed; Insurance Sector Earnings in Focus
[2021-02-18 10:10:08] European Stocks Edge Higher; Credit Suisse, Barclays Led Earnings Flood
[2021-02-18 08:45:06] European Stock Futures Mixed; Corporate Earnings in Focus
[2021-02-17 10:15:07] European Stocks Lower; Bond Yields Rise And Kering Slumps
[2021-02-17 09:45:07] European share rally pauses as focus turns to inflation; Kering...
[2021-02-17 08:40:18] European Stock Futures Mixed; Rising Bond Yields Prompt Caution
[2021-02-17 08:25:06] European new car sales drop by 25.7% year-on-year in January:...
[2021-02-16 17:45:03] Analysts lift profit growth forecast for European firms to 42.7%:...
[2021-02-16 09:50:03] European Stocks Edge Higher; Miners in Focus
[2021-02-16 09:30:03] European shares hover near one-year highs; miners jump
[2021-02-16 08:20:04] European Stock Futures Higher; Vaccination Optimism Helps
[2021-02-15 09:55:27] European Stocks Higher on Vaccination Hopes; Vivendi Soars
[2021-02-15 08:30:23] European Stock Futures Higher; Vaccination Optimism Grows
[2021-02-12 10:15:10] European Stocks Lower as U.K. GDP Posts Record Slump
[2021-02-12 09:40:10] European shares dip; ASML, ING among early gainers
[2021-02-12 08:50:10] European Stock Futures Lower; Caution as Week Ends
[2021-02-11 10:20:07] European Stocks Edge Higher; Credit Agricole Posts Strong Gains
[2021-02-11 09:25:06] European shares edge higher, AstraZeneca gains after earnings
[2021-02-11 08:30:07] European Stocks Edge Higher; Corporate Earnings in Focus
[2021-02-11 07:10:08] European aviation maps flight path to carbon neutrality
[2021-02-10 10:25:02] European Stocks Mostly Higher; SocGen Leads Busy Earnings Day
[2021-02-10 09:30:04] European shares head higher on upbeat earnings
[2021-02-10 08:40:03] European Stock Futures Higher; SocGen Earnings Help
[2021-02-09 10:45:02] European Stocks Lower; Total Helps Energy Sector
[2021-02-09 09:30:03] European shares dip after strong rally, Total rises
[2021-02-09 08:30:03] European Stock Futures Mixed; Total Earnings in Focus
[2021-02-08 10:15:22] European Stocks Higher; Dialog Deal Boosts Tech Sector
[2021-02-08 09:30:22] European shares rise as Dialog Semi lifts technology stocks
[2021-02-08 08:40:42] European Stock Futures Higher; Virus Optimism Grows
[2021-02-05 20:20:15] White House says European trade tariff policy under review
[2021-02-05 12:15:10] StockBeat: A Tale of Two Bond Yields Lifts European Markets
[2021-02-05 09:55:10] European Stocks Edge Higher; BNP Paribas Gains on Solid Earnings
[2021-02-05 09:25:10] European shares rise in early trading, Germany lags broader rally
[2021-02-05 08:20:10] European Stock Futures Edge Higher; Vaccine Optimism Helps
[2021-02-04 10:10:06] European Stocks Higher; Solid Corporate Earnings Help
[2021-02-04 09:30:07] European shares pause after three-day rally
[2021-02-04 08:40:06] European Stock Futures Mixed; Deutsche Bank Swings to Profit
[2021-02-03 10:05:07] European Stocks Higher; Corporate Earnings, Italian Politics Help
[2021-02-03 09:25:07] European shares rise on earnings, recovery hopes
[2021-02-03 08:40:06] European Stock Futures Higher; Draghi Return in Focus
[2021-02-02 10:15:04] European Stocks Higher; Stimulus Hopes Boost Growth Optimism
[2021-02-02 09:30:04] European shares rise on recovery hopes, technology shares gain
[2021-02-02 08:25:03] European Stock Futures Higher; Market Optimism Rises
[2021-02-01 10:30:23] European Stocks Higher; Reddit Horde Shifts Focus to Silver
[2021-02-01 09:35:22] European shares rise as miners lead early gains
[2021-02-01 08:40:22] European Stock Futures Higher; Silver Spotlight Relieves Pressure
[2021-01-29 10:30:12] European Stocks Weaken; Activism Concerns Weigh
[2021-01-29 08:25:26] European Stock Futures Lower; Uncertainty over Populist Movement
[2021-01-28 10:35:07] European Stocks Lower; Wall Street Selloff and Virus Restrictions Weigh
[2021-01-28 09:35:06] European shares hit near 1-month low after Wall Street selloff
[2021-01-28 08:30:16] European Stock Futures Lower; Wall Street Selloff Weighs
[2021-01-27 10:40:07] European Stocks Mixed; Vaccine Rollout, Corporate Earnings Eyed
[2021-01-27 09:35:07] European stocks head lower, LVMH shines after earnings
[2021-01-27 08:45:07] European Stocks Mixed; Vaccine Rollout, Fed Decision in Focus
[2021-01-26 15:05:03] EU green light for $3.5 billion pan-European battery project
[2021-01-26 14:20:03] Opening Bell: U.S. Futures Waver As European Stocks Recover After...
[2021-01-26 10:25:03] European Stocks Higher; UBS, Ifo Help Sebtiment
[2021-01-26 10:10:04] Atos partners with OVHcloud to offer European-made cloud services
[2021-01-26 09:30:10] European stocks inch higher as UBS profit surges
[2021-01-26 08:25:04] European Stock Futures Lower; Stimulus Uncertainty Weighs
[2021-01-25 10:15:22] European Stocks Mixed; Earnings and Covid Developments in Focus
[2021-01-25 09:30:25] Tech shares, corporate earnings lift European stocks
[2021-01-25 08:40:26] European Stock Futures Higher; Busy Week Ahead
[2021-01-22 10:25:10] European Stocks Lower; Economic Growth Worries Persist
[2021-01-22 08:40:10] European Stock Futures Lower; Consolidating on Covid Concerns
[2021-01-21 10:20:10] European firms improve diversity scores in pandemic year, study...
[2021-01-21 10:15:07] European Stocks Higher; Cautious Optimism Ahead of ECB
[2021-01-21 09:30:07] European shares extend gains on U.S. stimulus hope
[2021-01-21 08:55:06] European Stocks Edge Higher; ECB Meeting in Focus
[2021-01-20 10:15:07] European Stocks Higher; ASML Helps Chipmakers Higher
[2021-01-20 09:45:11] Luxury stocks, ASML lift European shares in early trading
[2021-01-20 08:40:07] European Stock Futures Mixed; German Virus Restrictions Extended
[2021-01-19 18:05:04] Zoom says some European users facing sign in issues
[2021-01-19 10:05:03] European Stocks Higher; Logitech Soars After Raised Guidance
[2021-01-19 09:35:04] European shares rise on upbeat earnings reports
[2021-01-19 09:15:07] European Stock Futures Higher; Yellen Testimony in Focus
[2021-01-18 09:40:23] European Stocks Lower; Carrefour Slumps as Takeover Pulled
[2021-01-18 08:45:23] European Stock Futures Lower; Virus Cases Sour Mood
[2021-01-16 14:45:15] Major European powers rebuke Iran over uranium metal plans
[2021-01-15 09:55:10] European Stocks Weaken as Covid Damage Mounts
[2021-01-15 09:30:12] European shares inch lower on lockdown worries
[2021-01-15 09:05:17] European Stock Futures Lower; Covid Lockdowns Weigh
[2021-01-14 10:30:08] European Stocks Higher; Retail Sales Updates Eyed
[2021-01-14 09:40:07] European stocks lifted by stimulus hopes, China data
[2021-01-14 08:50:07] European Stock Futures Higher; U.S. Stimulus Eyed
[2021-01-14 02:45:11] White House still considering lifting European, Brazilian travel...
[2021-01-14 01:25:10] London resilient at top of European tech investment table despite COVID
[2021-01-13 10:05:07] European Stocks Largely Flat; Coronavirus Developments in Focus
[2021-01-13 09:45:12] European stocks subdued on Orsted profit warning; Carrefour...
[2021-01-13 08:40:22] European Stock Futures Largely Flat; Coronavirus Developments Eyed
[2021-01-13 04:40:09] Exclusive: U.S. tells European companies they face sanctions risk...
[2021-01-12 15:25:03] European Inc earnings seen down 26% in fourth quarter
[2021-01-12 10:35:03] European Stocks Mixed; Fed Policy Changes Eyed