HSBC drags European shares lower; LVMH gains on merger talks - Metro US

HSBC drags European shares lower; LVMH gains on merger talks

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 24, 2019. REUTERS/Staff

(Reuters) – European shares were inched lower on Monday as a glum profit outlook from lender HSBC offset gains following positive developments in the U.S.-China trade talks and Brexit.

The pan-European STOXX 600 fell 0.1% at 0807 GMT and London’s FTSE 100 <.FTSE> was down 0.4%, but Germany’s DAX <.GDAXI> was up 0.2%.

Asia-focused HSBC lost 3% after the lender dropped its 2020 profit target and warned it would have to undertake costly restructuring, as it struggled amid a slowing global business environment.

Shares of Louis Vuitton owner LVMH gained 1% after a report that the company has approached U.S. jeweler Tiffany & Co with a $14.5 billion acquisition offer.

Trade – exposed auto <.SXAP> and mining <.SXPP> stocks led gains among sub-sectors.

U.S. and Chinese officials are “close to finalising” some parts of a trade agreement, officials said on Friday, while the European Union was expected approve a flexible 3-month Brexit delay.

(Reporting by Lisa Mattackal and Agamoni Ghosh in Bengaluru; Editing by Arun Koyyur)

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