European markets mixed on HSBC results, eurozone data

LONDON, Feb 28 (AFP): European equities were narrowly mixed and the euro rose on Monday as investors digested results from banking giant HSBC, rising oil prices amid ongoing unrest in Libya and fresh eurozone inflation data. London's FTSE 100 index of top shares fell 0.40 per cent to 5,977.39 points near the half-way stage, hit by disappointment that HSBC's results fell short of high market expectations. The Paris CAC 40 added 0.19 per cent to 4,078.27 points and Frankfurt's DAX 30 firmed 0.27 per cent to 7,204.54 points. Asia-focused bank group HSBC topped the fallers board in London, shedding 4.49 per cent to 679.20 pence. HSBC said its 2010 net profit more than doubled to $13.16 billion (9.56 billion euros) last year as bad debts plunged to the lowest level since 2006. Market expectations, however, had been for total net earnings of $14.02 billion, according to Dow Jones Newswires, with the shares suffering. "Banking giant HSBC is one of the biggest losers on the day, down as full year profits come in slightly below expectations," said analyst Ben Critchley at financial spread-betting firm IG Index. "This has knocked the share back to its early-February levels and although some may view the slide as something of an overreaction, it still shows that despite apparently continuing on the road to recovery, investors are still taking the view that bank shares are looking fully valued at current levels." Concerns over turmoil in the Arab world and higher oil prices also continued to hit sentiment. London Brent oil rose back above $112 per barrel on Monday. The New York contract for West Texas Intermediate oil hit $103.41 on Thursday, a level last seen in September 2008, and Brent came close to $120 before Saudi Arabia assured markets that it was ready to boost supplies.