The FTSE 100 dropped 94 points, or 0.9%, to 10,673 in early Tuesday trading, reversing Monday’s gains as selling pressure weighed on London’s leading shares.
The blue-chip index opened at 10,768 before retreating sharply, trading within an early range of 10,656 to 10,768 as investors assessed the latest corporate earnings and broader market outlook.
HSBC remained a key source of weakness, with its shares falling following third-quarter results that showed a 32% increase in pre-tax profit but fell short of market expectations.
The banking giant’s disappointing share price reaction added pressure to the wider financial sector, contributing to the FTSE 100’s decline despite the company’s announcement of a further $1 billion share buyback.
The FTSE 250 also moved lower, slipping 46 points to 24,455, indicating that weakness extended beyond London’s largest companies.
The decline followed Monday’s stronger session, when the FTSE 100 gained nearly 77 points to close at 10,767.33.
Investors are also positioning ahead of Wednesday’s UK Autumn Budget, with uncertainty surrounding potential tax measures, government borrowing and economic growth influencing market sentiment.
Attention remains focused on corporate earnings, the upcoming Federal Reserve interest rate decision and developments in the Middle East, particularly their implications for energy prices and inflation.
The FTSE 100’s early retreat highlights the market’s sensitivity to earnings expectations, with stronger reported profits proving insufficient to support HSBC shares as investors reassess valuations ahead of several major economic announcements.
