STOXX 600 Rises 0.52% on Oct 27, 2026 as Tech Offsets HSBC Slump

Key takeaways

• The STOXX Europe 600 rose 0.52% to 643.96 on Tuesday, October 27, 2026, after recovering from an early fall to 637.98, according to Investing.com closing data.
• The Euro Stoxx 50 gained 0.95% to 6,170.95 and Germany's DAX rose 0.78% to 25,609.22 as chip, software and drug stocks offset weak bank earnings.
• London's FTSE 100 was the only major index to fall, losing 0.69% to 10,693.06 after HSBC shares dropped more than 6% on a third-quarter profit miss, Investing.com reported.
• BE Semiconductor jumped 9% after Applied Materials said it plans to raise its stake to about 20%, and Novartis rose after lifting its profit guidance, according to Investing.com.
• The dollar firmed again: EUR/USD fell 0.37% to 1.1145 and GBP/USD slipped 0.32% to 1.3307. Bund and gilt yields were almost unchanged at 3.358% and 5.354% before the Fed, UK Budget and ECB.

Session recap

The STOXX 600 is up today: European stocks shook off an early, earnings-driven drop and closed higher for a second straight session, with continental markets led by technology and healthcare while London lagged. For the wider picture, see Asian and global markets today and our Europe brief for October 26.

Notes: index changes are calculated from Monday's closes (STOXX 600 640.66, Euro Stoxx 50 6,113.05, DAX 25,410.84, FTSE 100 10,767.33, CAC 40 7,847.32, FTSE MIB 49,186.81, IBEX 35 19,033.30) and include the closing auctions. Yahoo Finance quotes taken at 16:30 UTC, just before the auctions, differ by less than 0.1%. Currency changes compare 16:30 UTC quotes on Monday (EUR/USD 1.1186, GBP/USD 1.3350) and Tuesday. The European Central Bank's euro reference rate, set at 13:15 UTC, fell to $1.1150 from $1.1188. Yield rows are Trading Economics late-session quotes compared with Investing.com's Monday closes (Bund 3.355%, gilt 5.352%). The STOXX 600 traded between 637.98 and 644.14, and the DAX between 25,340.21 and 25,647.49 (Yahoo Finance).

What drove it

HSBC and Reckitt weigh on London

HSBC was the biggest drag on the FTSE 100. Its pre-tax profit rose 32% to $9.63 billion in the third quarter but missed a consensus of about $9.7 billion, and its CET1 capital ratio, a key measure of a bank's capital strength, slipped to 13.9% from 14.1%, Investing.com reported. A $1 billion share buyback did not offset the miss. Reuters, in a report carried by Business Recorder, said HSBC's revenue came in below estimates partly because its wealth business grew more slowly, and the European bank index fell 1.3% in early trade.

Reckitt Benckiser also fell more than 6% at one point, according to Investing.com, after cutting its full-year like-for-like sales growth forecast to 3.5%–4.5% from 4%–5%. Its third-quarter growth of 3.3% missed a company-compiled forecast of 3.6%. Informa cut its underlying revenue growth outlook to around 3% from 6%, citing event rescheduling linked to the Middle East.

Chips and healthcare lift the continent

BE Semiconductor surged 9% after Applied Materials said it plans to lift its stake from 9% to about 20%, Investing.com reported. Inficon gained more than 5% after raising its full-year outlook, and Porsche rose 2.3% on a recovery in operating profit. Novartis climbed after raising its full-year core operating income guidance; Reuters reported a 3.1% gain early in the session, while Investing.com later put the rise at 2.1%.

Trading Economics said Schneider Electric rose 2.1%, ASML 1.2%, SAP 1.1% and Siemens 0.8% during the afternoon. Investing.com linked part of the tech strength to an overnight rally on Wall Street and in Asia driven by AI optimism around Anthropic's planned listing (background: Anthropic's S-1 filing for a Nasdaq IPO). Europe has less exposure to mega-cap tech, which limited the benefit, the same report said.

Oil eases but stays high

Brent crude for January delivery fell 0.56% to $110.12 a barrel during the London session, according to Investing.com. Traders remained wary of renewed US–Iran fighting: Iran's Foreign Ministry said Washington was "not being serious" about negotiations, while also saying Tehran had "never closed the door" to diplomacy, the report said. High energy prices feed into inflation and interest rates (see how oil shocks hit inflation and rates).

Currencies and bonds

The dollar gained against the euro and the pound for a second day before Wednesday's Federal Reserve decision. The cause of the euro's drop has not been confirmed by the sources we checked. Bund yields hovered near their lowest level since early September, with some safe-haven demand on concerns the Middle East conflict could persist, according to Trading Economics. Gilt yields held at 5.35% before the Budget.

Political & policy watch

Central banks

The Fed is widely expected to keep its target range at 3.75% to 4.00% on Wednesday, and the ECB is projected to hold its deposit rate at 2.50% on Thursday after raising rates in June and September, Investing.com reported. Louis Gargour of Market Securities Wealth said, according to Investing.com: "Our assessment is that the ECB has largely done what was required to combat European inflation." Our ECB meeting October 2026 preview explains the options.

United Kingdom

Chancellor John Healey presents the Budget on Wednesday. Mohit Kumar of Jefferies said, according to Investing.com: "Optically we see the Chancellor sticking to the fiscal rules and the budget would be more of a clearing event." The British Retail Consortium said shop price inflation rose to 2.1% in October from 1.4%, a two-and-a-half-year high.

France

Reuters, via Business Recorder, reported that French student leaders vowed to keep protesting despite government concessions on education, and that the movement is spreading to unions and other activists, which has shaken investor confidence in the euro zone's second-largest economy. The CAC 40 still closed 0.60% higher.

What to watch next

• October 28: US Federal Reserve rate decision at the end of its two-day meeting.
• October 28: UK Budget from Chancellor John Healey.
• October 29: European Central Bank rate decision.
• This week: roughly 30% of STOXX 600 companies are scheduled to report results, according to Investing.com.

Risk checklist for readers

• Three policy events in two days. The Fed, the UK Budget and the ECB can move bond yields, currencies and bank shares quickly.
• Earnings beats and misses. A profit rise can still disappoint if it trails consensus, as HSBC showed; compare results with expectations, not just last year.
• Capital ratios matter for banks. A lower CET1 ratio can reduce room for buybacks and dividends, which investors watch closely.
• Index composition. The FTSE 100 is heavy in banks, energy and consumer staples, so it can move differently from tech-rich indexes like the DAX.
• Energy risk. Oil above $100 a barrel and Middle East headlines can change inflation expectations and rate outlooks.
• Check official data. Closing values differ slightly between providers; STOXX, the exchanges and the ECB publish reference values.

This article is for information only and is not investment advice.