Europe midday: Markets mixed amid bank earnings barrage

28th Oct 2026 11:37

(Sharecast News) - European stock markets diverged on Wednesday as a strong set of bank results drew mixed reactions from investors, while uncertainty was high ahead of US tech earnings and central bank decisions.

The pan-European Stoxx 600 index was down just 0.04% by the lunchtime period, with losses in London, Zurich and Madrid offset by gains in Frankfurt, Paris and Milan.

Markets were digesting a barrage of earnings reports from the European banking sector early on, with Standard Chartered, Deutsche Bank, BNP Paribas, Santander and UBS among those publishing third-quarter results.

Standard Chartered gained in London after reporting a 29% increase in Q3 pre-tax profit at constant currencies to $2.3bn, as operating income rose 14% excluding notable items to $5.8bn, helped by a strong performance from Wealth Solutions and Global Markets. The emerging markets-focused lender now expects full-year operating income growth to exceed its previous guidance range of 5% to 7%.

Deutsche Bank was higher in Frankfurt after reporting a better-than-expected 8% rise in Q3 pre-tax profit to €2.6bn. Revenue increased 4% to €8.3bn, while the German lender reaffirmed its ambition to generate more than €33bn in revenue for the full year.

BNP Paribas was little changed in Paris despite reporting a 13.5% increase in Q3 net income to €3.5bn, supported by a 9.5% increase in revenue to €13.76bn. The French banking group also announced plans to launch a €1.3bn share buyback in November.

UBS fell in Zurich as investors were underwhelmed with an 8% increase in Q3 net profit to $2.7bn, driven by wealth management inflows and stronger equities trading.

Meanwhile, Santander was providing a drag in Madrid, with markets shrugging off a 19% increase in Q3 underlying pre-tax profit, as reported profits declined 2% due to restructuring and impairment charges while loan-loss provisions increased.

Outside of the banking sector, shares in Stellantis surged in Milan after the auto giant reported a sharp narrowing of third-quarter losses as revenues increased, with the Jeep and Peugeot owner reaffirming its full-year guidance despite volatile conditions for the car industry.

In macro news, Germany's GfK consumer climate index slipped to a six-month low of -30.8 points for November from -30.6 in October, though slightly ahead of the -30.9 consensus forecast. The index remained well below its year-earlier level of -22.5, as concerns over inflation and household finances continued to weigh on spending intentions despite improving economic expectations.

Meanwhile, UK investors were keeping a close eye on Chancellor John Healey's first Autumn Budget, due around 1230 GMT, when the Office for Budget Responsibility's updated Economic and Fiscal Outlook will also be published.

Analysts at Danske Bank said Healey is expected to stick to the fiscal rules introduced by his predecessor Rachel Reeves, and with little room to manoeuvre, a cautious budget is expected. "Income tax, National Insurance, VAT and capital gains tax rates have been ruled out, so any new revenue is likely to come from narrower sources such as banks, gambling and property. Some targeted cost-of-living support is also expected," they said.

Across the Pond, Wall Street was gearing up for the latest round of Big Tech earnings, with Microsoft and Alphabet results expected after the closing bell. Amazon.com will report results on Thursday, while investors were keeping their eyes peeled for the latest earnings from chip and hardware stocks such as Intel and SanDisk.

Meanwhile, monetary policy meetings from the Federal Reserve, European Central Bank and Bank of Japan were all expected before the end of the week, with the Fed kicking off proceedings with an interest rate decision at 1800 GMT, though policymakers are widely expected to keep rates steady.