STOXX 600 falls 0.84% as Barclays results, Hermès sales disappoint and oil rises
Key Facts
Europe's STOXX 600 index fell 0.84% to 639.05 points by 07:12 GMT in the session on 22 October 2026, as Barclays' results and Hermès' sales update weighed on stocks, according to Reuters. The British bank's shares fell 2.5% in European trading after it reported results that included investment banking income below expectations. Hermès suffered a steeper loss, with its shares dropping 6.7% after it reported third-quarter revenue growth below analysts' estimates. The market decline coincided with a rise of more than 2% in oil prices amid fears of escalation and supply disruptions following Houthi attacks in Saudi Arabia, according to Reuters. The session thus combined disappointment over the two companies' announcements with an oil price rise linked to supply risks in the region. Barclays' shares fell despite an increase in pretax profit, while Hermès' shares declined despite continued growth in overall sales at constant exchange rates.
Barclays' results showed pretax profit rose to £2.3 billion in the third quarter of 2026 from £2.1 billion in the same period of 2025, according to Reuters. Alongside the results, the bank announced a new £500 million share buyback programme. But its investment bank fell short of expectations, reporting quarterly income of £3.1 billion against forecasts of £3.3 billion. Within that business, equities trading revenue rose 47% in the third quarter, according to figures reported by the agency. That growth in equities trading revenue was accompanied by overall investment banking income falling short of the level analysts had expected for the same period. The bank's announcement thus included higher pretax profit and a share buyback programme, alongside a gap between its investment banking performance and expectations.
At Hermès, third-quarter sales rose 4.3% from the same period a year earlier at constant exchange rates, according to Reuters. A Visible Alpha poll had pointed to growth of 5.2%, leaving the actual pace of expansion below expectations in the company's quarterly sales update. Performance varied across businesses, with ready-to-wear and accessories sales falling 2% year on year during the quarter, a contraction the company's chief financial officer attributed to weak Chinese demand. By contrast, leather goods sales rose 10.8% over the same period, posting growth while clothing and accessories sales contracted. Hermès' chief financial officer described the Chinese market as "very difficult", according to Reuters. He reaffirmed that the company continued to invest there, despite the weak demand he cited in explaining the decline in ready-to-wear and accessories.
Over the broader period, Hermès' consolidated revenue totalled €12.3 billion in the nine months ended September 2026, according to the company's official statement. Its sales in Greater China were stable during that period amid an environment the company described as more challenging. That stability relates to Greater China's performance over the first nine months, while the chief financial officer linked weak Chinese demand to the contraction in ready-to-wear and accessories sales in the third quarter. In the "Other" region, which mainly includes the Middle East, the company recorded a 4% decline in sales at constant exchange rates over the first nine months. The sales contraction in the region that includes the Middle East thus formed part of the results for the period through September, alongside stable sales in Greater China. According to its financial calendar, Hermès has scheduled the release of its 2026 annual results for 12 February 2027.