HSBC Holdings Plc posted a 32% jump in third‑quarter profit as higher interest rates bolstered net interest income, the London‑listed bank said, and moved to increase its share buyback to $1 billion. The results, however, missed analysts’ estimates and the stock slid as much as 6% on the disappointment.
The report arrives amid signs of tightening credit across the euro area. The European Central Bank said banks in the single currency bloc tightened lending standards and saw weaker demand for loans in the third quarter — dynamics that reinforce the central bank’s cautious stance on further rate hikes.
Macroeconomic strains are visible elsewhere in the region. French consumer confidence plunged to a 13‑year low in October, the monthly index falling five points to 80 — well below the Bloomberg median forecast of 85 and short of every economist’s projection — as markets contend with the fallout from a recent bond‑market selloff and widespread street protests.
The investor backdrop is complicated by big tech and AI headlines. Anthropic PBC’s planned initial public offering is shaping up to be among the largest ever, with the AI startup’s valuation soaring from about $183 billion a little over a year ago to $965 billion in its most recent private round. Market expectations have swelled that Anthropic could be worth close to $2 trillion on listing, potentially eclipsing Berkshire Hathaway Inc. in market value.
Oil markets traded with relative calm as traders weighed diplomatic efforts to avoid further escalation in the US‑Iran conflict and looked ahead to a slate of elections, including in Israel. Brent crude hovered near $116 a barrel after a near‑1% decline in the previous session.
In Asia, signs of rising domestic price pressures added to bets on higher rates. Japan’s corporate service prices accelerated in September, reinforcing expectations that the Bank of Japan may raise interest rates again before year‑end.
Equity markets showed a mixed picture: European shares edged up about 0.2%, Japan’s market gained roughly 0.6%, while Hong Kong and mainland Chinese stocks fell about 1%. U.S. futures pointed to modest gains of just under 0.5%.
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