On Tuesday the European Markets weakened, regardless of higher commodity prices with HSBC weighing as the region’s largest bank illustrated the current difficulties for the sector. The German Dax traded 1% lower, the CAC 40 ell 0.2% and the U.K.’s FTSE 100 index dropped 0.1%.
HSBC 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. 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.
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.
U.S futures traded 0.9% higher at $62.22 a barrel, while Brent rose 0.9% to $64.96..Gold Futures were 0.1% lower at $1,806.30/oz.
German cement-maker HeidelbergCement stock fell 2.1% even as it posted a 6% rise in core profit for last year, while private security firm G4S recommended shareholders vote for Allied Universal’s final offer, ending a months-long takeover battle with Canada’s GardaWorld.
The United Kingdom received some good news as the unemployed claimant count decreased by 20,000 in January as opposed to rising by the forecast 35,000.