HSBC pulls European shares lower; luxury stocks in focus

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HSBC pulls European shares lower; luxury stocks in focus
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European shares retreated on Monday as a glum profit outlook from the region&#03...

- European shares retreated on Monday as a glum profit outlook from the region’s largest lender HSBC offset gains in trade-sensitive sectors buoyed by positive developments on the U.S.-China trade front.

The pan-European STOXX 600 index fell 0.2% at 0935 GMT with the banking index .SX7P leading the losses. Another disappointment among banks was Spain’s Bankia , down 3%, after the state-owned lender posted a 23% drop in third-quarter net profit as it struggles to increase margins from lending because of ultra-low interest rates.

Defensive plays like utility .SX6P and telecom .SXKP stocks lost between 0.4% and 0.7% as appetite for riskier sectors rose on the day.

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