HSBC still weighing on FTSE

In London, results from HSBC have dragged the banking sector and the FTSE 100 into the red.

As the Asian-focused bank is the largest bank in Europe and is by far the biggest UK listed bank, traders had high hopes for HSBC as it had emerged from the credit crunch in a relatively strong position. However, although the finance house reported a 10% increase in first-half profits, the market was expecting an increase of 15%. After the results were released, the company’s share price started to move south, dragging other banks down with. Investors instead shorted Standard Chartered as the bank is focused on the far east and it reporting its figure tomorrow.

The mining sector finished up 0.5% on the day, after China revealed some encouraging numbers over the weekend. Beijing will announce inflation and trade data towards the end of the week.

The eurozone posted some mediocre services figures but on the plus side they were an increase on the month.

In the US the Dow is down 40 points at 15,617, as better-than-expected ISM non-manufacturing figures lifted stocks off the lows, though not enough to into enter positive territory.

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