FTSE 100 falls ahead of Budget and US rate decision

Summarised from 3 outlets · Updated 28 Oct, 06:39 · Archive

The FTSE 100 fell 0.8% on Tuesday as investors awaited the Budget and US interest rate decision.

The FTSE 100 fell 0.8% on Tuesday as investors looked ahead to the Budget announcement and US interest rate decision scheduled for Wednesday. The index ended down 80.79 points at 10,686.54. Whilst the FTSE 250 rose 0.9% to 24,716.37 and the AIM all-share advanced 0.7% to 758.49, the FTSE 100 underperformed its European peers and weighed against the optimistic mood in the US, where technology stocks rallied.

Two major listed companies released disappointing third-quarter results. HSBC shares fell 5.4% after the Asia-focused lender's net interest income came in below analyst expectations. Constant currency revenue rose 4.8% to $18.62 billion from $17.76 billion in the prior year, but fell short of the $18.93 billion consensus. Banking net interest income grew to $11.66 billion from $11.05 billion, missing the expected $11.90 billion. Bank of America described the results as 'soft', whilst Citigroup analyst Andrew Coombs called them 'mixed'.

Jefferies analyst Joseph Dickerson noted that the bank's deposit commentary was 'incrementally cautious', with HSBC flagging 'emerging customer and competitive pressure on deposits in Hong Kong and the UK'. Reckitt Benckiser shares fell 4.9% after the company lowered its annual guidance following an unexpected slowdown in US sales during the third quarter. Lower oil prices also weighed on sentiment among investors on Tuesday.

How it is being reported

• FTSE 100 Live: Stocks to slip ahead of BudgetWelcome back to City AM‘s FTSE 100 liveblog. It’s Wednesday morning and all eyes are on John Healey, who will deliver his first Budget later today. The markets are set to open into the red as investors hold their breath for the Chancellor’s speech. Rising oil prices will also pose a challenge to the FTSE [...]City AM · 28 Oct, 06:31
• Poor trading day for FTSE as markets await Wednesday’s BudgetThe Chancellor’s statement and US and Canadian rates decisions were weighing on investors.Evening Standard · 27 Oct, 17:25
• Poor trading day for FTSE as markets await Wednesday’s BudgetThe Chancellor’s statement and US and Canadian rates decisions were weighing on investors.Independent Business · 27 Oct, 17:25

In this story: FTSE 100 · HSBC · Reckitt Benckiser · Bank of America · Citigroup · Jefferies · UK · Hong Kong

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log