{"id":142303,"title":"FTSE 100 falls 81 points as HSBC, BP and Reckitt slide","publisher":"Share Talk","author":"sharetalk","published":"2026-10-27T17:21:59+00:00","modified":"2026-10-27T17:21:59+00:00","canonical_url":"https://www.share-talk.com/ftse-100-falls-81-points-as-hsbc-bp-and-reckitt-slide/","markdown_url":"https://www.share-talk.com/ftse-100-falls-81-points-as-hsbc-bp-and-reckitt-slide.md","json_url":"https://www.share-talk.com/ftse-100-falls-81-points-as-hsbc-bp-and-reckitt-slide.json","category":"Blogs","categories":["Blogs","Technology","Technology, Media & Telecoms"],"tags":["Aim All Share","Asia","Bangkok","Denmark","Endeavour Mining","Fed","Federal Reserve","Finland","FRANCE","FTSE 100","GERMANY","Glencore","Greenland plan","Hong kong","Japan","London","Manila","mining stocks","Mumbai","Nasdaq Composite","NATO alliance","Netherlands","Nikkei 225","Norway","S&P 500","shanghai","Singapore","Sweden","Sydney","Taiwan","UK","United States","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/b641ee5e-5117-4c07-8ddc-78514991497f.png?fit=1727%2C911&quality=80&ssl=1","format":"news","language":"en-GB","content":"**London’s FTSE 100 suffered its biggest one-day decline in around a month on Tuesday, falling 0.8% as heavy losses for HSBC, Reckitt Benckiser and oil majors outweighed gains in mining shares, while investors awaited Wednesday’s UK Autumn Budget and US Federal Reserve interest rate decision.**\n\nThe **FTSE 100 closed down 80.79 points at 10,686.54**, reversing Monday’s gains and underperforming major European and US stock markets.\n\nHowever, the broader UK market proved more resilient, with the **FTSE 250 climbing 215.12 points, or 0.9%, to 24,716.37**, while the AIM All-Share advanced 0.7% to 758.49.\n\n**HSBC was among the biggest blue-chip fallers, declining 5.4% to 1,291.40p**, after its third-quarter earnings disappointed investors despite a substantial increase in reported profits.\n\nThe banking giant reported revenue of **$18.62 billion, up 4.8% on a constant-currency basis**, but below analyst expectations of $18.93 billion.\n\nBanking net interest income increased to **$11.66 billion from $11.05 billion**, also missing the $11.90 billion market consensus.\n\nAlthough HSBC reported a 32% increase in pre-tax profit and announced a further $1 billion share buyback, analysts highlighted weaker-than-expected income and growing competition for deposits.\n\nBank of America described the results as soft, while Citigroup considered the performance mixed. Jefferies also highlighted management’s cautious commentary regarding competitive pressures on deposits in Hong Kong and the UK.\n\n**Reckitt Benckiser dropped 4.9% to 5,218p** after lowering its full-year sales growth forecast following weaker-than-expected third-quarter trading.\n\nThe consumer goods group now expects **2026 like-for-like revenue growth of between 3.5% and 4.5%**, down from its previous guidance of 4% to 5%.\n\nThe downgrade reflects manufacturing constraints affecting Lysol cleaning products in North America and slower demand growth in China’s vitamins, minerals and supplements market.\n\n**Energy companies also weighed heavily on the index as Brent crude retreated to $114.13 a barrel**, compared with $117.02 on Monday.\n\n**BP fell 2.9% to 612.70p, while Shell declined 1.8%**, reflecting the impact of weaker oil prices on investor sentiment towards major producers.\n\nThe decline followed diplomatic discussions in Tehran involving representatives from Saudi Arabia, Turkey, Pakistan and Iran, aimed at reducing tensions and preventing renewed military escalation in the Middle East.\n\n**Mining shares provided some support**, with Antofagasta leading the FTSE 100 gainers, rising 137p to 3,311p.\n\nBarratt Redrow advanced to 337.90p, Endeavour Mining gained to 3,983p, Rio Tinto climbed to 6,400p and Anglo American rose to 3,838p.\n\nThe gains came as **gold strengthened to $4,057.67 an ounce**, compared with $4,017.92 on Monday.\n\nAmong mid-cap companies, **Vistry Group surged 8.2%** after announcing that Severn Trent Chief Financial Officer Helen Miles would join the housebuilder as its new finance chief during 2027.\n\nMiles joined Severn Trent in 2014 and became its CFO in 2023, bringing financial and operational experience to Vistry’s leadership team.\n\nElsewhere, **Shoe Zone fell 8.8%** after forecasting an adjusted pre-tax loss of approximately **£1 million** for the financial year ended 3 October, compared with a £2.4 million profit a year earlier.\n\nThe discount footwear retailer reported a **4.5% decline in revenue to £142.4 million**, reflecting weaker consumer confidence and a reduction in its store estate from 269 to 251 shops.\n\n**European and US markets performed more strongly than London**, with France’s CAC 40 closing 0.6% higher and Germany’s DAX gaining 0.8%.\n\nOn Wall Street, the Dow Jones Industrial Average was up 0.1% around London’s close, while the S&P 500 advanced 0.7% and the technology-heavy Nasdaq Composite climbed 1.3%.\n\nUS investor sentiment received some support from stronger consumer confidence figures, with **the Conference Board’s index rising 7.5 points to 91.7 in October**, exceeding expectations for a decline.\n\nHowever, markets remain focused on **Wednesday’s Federal Reserve interest rate announcement**, with most economists expecting policymakers to leave borrowing costs unchanged.\n\nBank of America remains an exception, forecasting a quarter-point increase amid concerns that US inflation remains persistently above the Federal Reserve’s 2% target.\n\nInvestors will also scrutinise comments from Fed Chair Kevin Warsh for signals about future monetary policy, particularly whether further tightening may be required before the end of 2026.\n\nIn currency markets, **sterling weakened to $1.3307 against the dollar**, compared with $1.3353 on Monday, while the euro slipped to $1.1142.\n\nUS Treasury yields edged higher, with the **10-year yield reaching 5.00%** and the 30-year yield rising to 5.31%.\n\n**In London, attention is firmly focused on Chancellor John Healey’s first Autumn Budget on Wednesday**, with investors assessing the potential impact of tax changes, government borrowing and plans to stimulate economic growth.\n\nThe Government is expected to outline additional investment through public financial institutions, potentially benefiting sectors including infrastructure, defence, artificial intelligence and energy.\n\nSue Noffke, manager of the Schroder Income Growth Fund, warned that further increases in corporate costs could undermine business investment and economic growth.\n\nShe suggested that policy stability and measures encouraging private-sector investment would be particularly important for UK-listed companies.\n\n**The FTSE 100’s decline contrasted with gains across the FTSE 250, AIM and major international markets**, suggesting that weakness was concentrated among selected heavyweight companies rather than reflecting a general retreat from equities.\n\n**Wednesday promises another significant session for investors**, with third-quarter results expected from GSK and Standard Chartered, a trading update from Unilever, the UK Autumn Budget and interest rate announcements from the Federal Reserve and Bank of Canada.\n\nThe combination of corporate earnings, fiscal policy and monetary decisions could shape the direction of UK and global equity markets for the remainder of the week."}