The FTSE 100 showed resilience, trading flat to slightly higher and maintaining levels around record highs, while most European markets experienced weakness. Strength in banking shares, particularly HSBC, counteracted declines in commodity-heavy sectors.
- The FTSE 100 traded flat to slightly higher.
- HSBC rose over 2.5% after raising its 2025 profitability guidance.
- HSBC took a $1.1 billion provision related to the Bernard Madoff fraud case.
- HSBC’s third-quarter pretax profit fell 14% to $7.3 billion.
- HSBC now targets a “mid-teens or better” return on tangible equity this year.
- Fresnillo and Endeavour dropped over 3% as gold prices slid.
- Glencore, Rio Tinto, Shell, and BP also retreated alongside weaker commodity prices.
The performance of the FTSE 100 appears to be driven by contrasting forces. The banking sector, led by a specific institution’s positive earnings news and improved outlook, is providing significant support. This offsets the negative impact from declines in commodity-related companies, which are suffering from lower commodity prices. Therefore, the overall direction of the asset is influenced by the relative strength of these opposing sectors.