LONDON: 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 fell 0.75 percent to 10,686.54 points, its biggest one-day decline in about a month. The midcap FTSE 250 gained 0.93 percent.
HSBC fell 5.4 percent, 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 USD18.6 billion, missing analysts’ estimates of USD19 billion, hurt by a slowdown in its wealth business.
Bank stocks were mixed: NatWest Group and Lloyds Banking Group fell 1.5 percent and 0.3 percent, while Barclays firmed nearly 1 percent.
Britain’s budget is due on Wednesday, with focus on key fiscal announcements against a backdrop of high borrowing costs 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 rose 2.4 percent despite cutting its full-year revenue growth guidance to 3 percent from 6 percent, as security concerns in the Middle East forced the rescheduling of events in Saudi Arabia.
Dettol maker Reckitt fell 4.9 percent after cutting its annual net revenue growth forecast, dragging the personal care, drug and grocery sector 1.3 percent lower into negative territory.
Computacenter rose 1.6 percent 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.
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