HSBC selloff weighs on European banks

The STOXX 600 index declined 0.2% to 639.64 points, while the European banking index fell 1.3%. HSBC shares dropped 6.9% following weaker-than-expected third-quarter revenue. Continuing protests in France also weighed on investor sentiment.

The selloff highlights the sensitivity of European banks to elevated earnings expectations. In contrast, Swiss drugmaker Novartis gained 3.1% after raising its annual operating profit outlook, demonstrating a divergence between sectors. Banking performance and political developments in France remain important market risks.