European shares slide as caution returns, FTSE leads losses

European equities are trading lower at the open on Thursday, surrendering part of the previous session's advance as investors adopt a cautious stance ahead of key central bank policy meetings and major tech earnings due later in the week. The opening moves are as follows:

• Eurostoxx -0.2%
• Germany DAX -0.1%
• France CAC 40 -0.4%
• UK FTSE -0.9%
• Spain IBEX -0.3%
• Italy FTSE MIB -0.4%

The FTSE 100 is suffering the steepest losses at the start of trading, with a heavy drop in HSBC shares dragging on sentiment after the lender posted revenue that fell short of expectations. HSBC's stock is off almost 7% in early deals, which is also pressuring the broader European banking sector. In addition, the cautious tone is being reinforced by the UK budget announcement scheduled for tomorrow.

French equities, meanwhile, are failing to hold onto the previous day's rebound as political worries remain in focus. Ongoing protests are adding to concerns about the nation's economic and fiscal outlook, and the latest French consumer confidence data have done little to ease those worries. The October reading showed household confidence falling to 80, the lowest level since 2013.

Turning to the wider market, the subdued mood is hardly unexpected. Investors face a busy stretch in the days ahead, with the Fed and ECB decisions along with a wave of big tech earnings. The latter will draw particular attention following the recent sell-off in AI-related trades, as market participants question whether the hefty spending by tech giants will ultimately generate the returns that have been promised.

The unease is visible in US futures as well, with S&P 500 futures down 0.1% and Nasdaq futures off 0.2% at present.

For now, European equities see little reason to pick up where yesterday's rebound left off. With a quiet economic calendar today, risk sentiment and earnings news are likely to remain the main drivers for trading.