FTSE 100 Falls as HSBC and Reckitt Shares Slide
The FTSE 100 fell more than 1% on Tuesday, underperforming European peers as disappointing results from HSBC and Reckitt weighed on financial and consumer stocks. HSBC dropped over 6% after third-quarter pretax profit rose 32% to $9.6 billion, missing analysts’ $9.7 billion estimate, while the bank left its full-year outlook unchanged. Reckitt also lost more than 6% after lowering its annual sales growth forecast, citing weaker revenue in North America. Adding to concerns over household spending, UK shop price inflation accelerated to 2.1% in October from 1.4% in September, exceeding expectations of 1.6%. Mining stocks offered some support, with Rio Tinto gaining more than 1.5%, Fresnillo rising 1.5% and Antofagasta advancing around 1%. Gold traded near $4,000 an ounce ahead of the Federal Reserve’s policy decision, while oil prices fell for a second session as renewed diplomatic efforts raised hopes of avoiding further escalation between the US and Iran.
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The FTSE 100 fell more than 1% on Tuesday, underperforming European peers as disappointing results from HSBC and Reckitt weighed on financial and consumer stocks. HSBC dropped over 6% after third-quarter pretax profit rose 32% to $9.6 billion, missing analysts’ $9.7 billion estimate, while the bank left its full-year outlook unchanged. Reckitt also lost more than 6% after lowering its annual sales growth forecast, citing weaker revenue in North America. Adding to concerns over household spending, UK shop price inflation accelerated to 2.1% in October from 1.4% in September, exceeding expectations of 1.6%.
Mining stocks offered some support, with Rio Tinto gaining more than 1.5%, Fresnillo rising 1.5% and Antofagasta advancing around 1%. Gold traded near $4,000 an ounce ahead of the Federal Reserve’s policy decision, while oil prices fell for a second session as renewed diplomatic efforts raised hopes of avoiding further escalation between the US and Iran.