European stocks struggle as miners lead declines

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 26, 2020. REUTERS/Staff

(Reuters) – European stocks slipped on Tuesday after sharp declines in the previous session, as weakness in miners and automakers offset upbeat results from UK blue-chip companies HSBC and BP.

The pan-European STOXX 600 index .STOXX slipped 0.1% by 0820 GMT after closing at a one-month low on Monday, while the German DAX .GDAXI was down 0.2% after hitting a four-month low.

UK’s FTSE 100 .FTSE was boosted by a 5.6% jump in Europe’s biggest bank HSBC HSBA.L after the lender signalled a pandemic-induced overhaul of its business model, accelerating plans to shrink in size and slash costs.

BP BP.L rose 1.6% as it swung back to a small profit in the third quarter.

Among euro zone companies, French consulting and IT services provider Capgemini CAPP.PA jumped 5.7% after it confirmed its full-year targets.

But miners .SXPP and automakers .SXAP fell more than 1%, dragging markets lower. Data showed profits at China’s industrial firms rose at a slower pace in September, hurt by factory-gate deflation and rising raw materials costs.

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