European shares opened lower, affected by the cautious expectations of HSBC Bank

European shares opened lower on Tuesday, with the impact of cautious expectations from HSBC on the Stoxx 600 index, while the optimistic performance of Engie shares mitigated some losses after the French energy company announced large annual profits.

The European Stoxx 600 index fell 0.2 percent in the first hour of trading.

Shares of HSBC, Europe’s largest bank, fell 1 percent amid its cautious outlook, which prompted investors to ponder whether its benefit from high interest rates had already peaked despite a 92 percent jump in its quarterly profit.

Shares in NGSA rose 5 percent after announcing a big profit hike for 2022 amid higher natural gas and electricity prices after Russia’s invasion of Ukraine.

Engie stock supported the European utility sector index, rising 0.4 percent, making it the biggest gainer on Tuesday.

The interest rate-sensitive technology sector index fell 1.1 percent.

European stocks have witnessed a significant improvement recently, as the Stoxx 600 index rose more than nine percent amid improved weather conditions, improved economic prospects, and China’s lifting of anti-Corona restrictions.

Smith & Nephew shares jumped 3.6 percent after the British medical device maker expected strong annual revenue growth.

Capgemini fell 0.4% after the French IT consultancy group forecast slower revenue growth for 2023.