The European stock markets closed mixed. The Stoxx 600 rose by around 0.5% after starting the day in negative territory. The drop in oil prices favoured the recovery, although the disappointment from HSBC's results limited the advance of the banking sector and kept the British market down.
Technology showed relatively better performance, supported by semiconductors, while energy was among the most lagging sectors. Among companies, HSBC fell by as much as 7% after maintaining its annual forecasts despite an increase in quarterly profit.
By indices, the Ibex 35 rose by 0.67% and was above 19,100 points; while the FTSE 100 dropped by nearly 0.8%, with a decline in the financial sector exceeding 2%.
Signals of Iran's openness to a negotiated exit from the conflict favoured the recovery from initial losses. The possibility of new diplomatic contacts moderated risk aversion, although the statements did not equate to an agreement that would guarantee the normalisation of maritime transport.
In France, consumer confidence fell from 85 to 80 points in October, its lowest level since June 2013 and clearly below the historical average of 100. The deterioration in households' financial outlook and the reduced willingness to make major purchases added a signal of weakness in domestic demand.
At the European close, the S&P 500 was up 0.6% and the Nasdaq was up 1.1%, while the Dow Jones remained practically flat. Investors were awaiting the decision from the Federal Reserve on Wednesday and the results from the major tech firms.
Sovereign yields recorded contained movements. The market expects the Federal Reserve to maintain rates on Wednesday, with attention focused on its message regarding the upcoming meetings. In the United States, the auction of $70 billion in five-year debt scheduled for the afternoon remained the next reference for assessing demand.
The yield on the German 10-year Bund was around 3.36%, practically flat. In the United States, the yield on the 10-year Treasury was around 4.99%, with an increase of less than 1 basis point. Changes compared to the previous close were, therefore, limited in both references.
The Brent crude oil fell by around 1.6%, settling at $114 per barrel. Expectations of diplomatic advances with Iran moderated pressure on crude and accompanied the improvement in equities.
The euro lost ground against the dollar. The EUR/USD fell by 0.3%, settling at 1.114. The single currency remained close to its recent lows, while the dollar maintained a firm tone ahead of the Fed meeting.
