European Stocks Open Lower as Profit Miss Weighs on BHP, HSBC

(Bloomberg) -- European equities declined at the open as profits misses dragged on miners and banking stocks, whereas automakers remained under pressure amid U.S. tariff concerns.

The Stoxx Europe 600 Index retreated 0.2 percent. BHP Group dropped as much as 0.4 percent after earnings missed first-half estimates due to production outages. HSBC fell 2.1 percent after its fourth-quarter earnings fell short of consensus forecasts. Daimler retreated 1 percent amid tariff woes.

All eyes remain on global trade tensions as the European Union vowed prompt retaliation if the U.S. imposes tariffs on imported vehicles, a concern that placed carmakers under pressure on Monday. Investors may also get further guidance on U.S. monetary policy this week after the Federal Reserve’s dovish stance fueled a rally in global equities.

“Some commentators have warned that tariffs could hurt the U.S. consumer and auto sector in the form of higher prices, but President Trump might use them as a bargaining chip against the EU,” said David Madden, a market analyst at CMC Markets U.K.

To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Monica Houston-Waesch

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