FTSE 100 falls as HSBC weighs, budget caution persists
FTSE 100 falls as HSBC weighs, budget caution persists Updates to market close
Oct 27 - Britain's FTSE 100 underperformed European peers on Tuesday, weighed down by HSBC after it missed quarterly revenue estimates, while investors stayed cautious ahead of the government's budget.
The blue-chip FTSE 100 index .FTSE fell 0.75% to 10,686.54 points, its biggest one-day decline in about a month. The midcap FTSE 250 .FTMC gained 0.93%.
HSBC HSBA.L fell 5.4%, its lowest in nearly six months, making it the biggest drag on FTSE 100 index
The bank, Europe's largest, reported third-quarter revenue of $18.6 billion, missing analysts' estimates of $19 billion, hurt by a slowdown in its wealth business
Bank stocks were mixed: NatWest Group NWG.L and Lloyds Banking Group LLOY.L fell 1.5% and 0.3%, while Barclays BARC.L firmed nearly 1%
Britain's budget is due on Wednesday, with focus on key fiscal announcements against a backdrop of high borrowing costs GB10YT=RR and energy prices
"Ultimately, UK companies need greater policy stability and confidence to invest. A relatively uneventful budget delivering that would not be a bad outcome," said Sue Noffke, Manager of the Schroder Income Growth Fund plc
UK business minister Jonathan Reynolds said Britain and the EU were "finding a way through" concerns over the bloc's proposed "Made in Europe" rules that have raised uncertainty for British manufacturers
Exhibitions group Informa INF.L rose 2.4% despite cutting its full-year revenue growth guidance to 3% from 6%, as security concerns in the Middle East forced the rescheduling of events in Saudi Arabia
Dettol maker Reckitt RKT.L fell 4.9% after cutting its annual net revenue growth forecast, dragging the personal care, drug and grocery sector .FTNMX452010 1.3% lower into negative territory
Computacenter CCC.L rose 1.6% after Stifel raised its price target on the IT services provider
Elsewhere, US and European stocks were steadied by softer oil prices and expectations the Federal Reserve will leave rates unchanged on Wednesday
(Reporting by Darshan Kumar and Medha Singh in Bengaluru; Editing by Janane Venkatraman and Diti Pujara)