FTSE 100 Falls 0.76% as HSBC Shares Slide After Quarterly Results
Key Facts
The FTSE 100 fell 0.76% to 10,685.18 points by 09:49 GMT on 27 October, heading for its biggest daily decline in about a month, according to Reuters. The drop came as HSBC shares fell 7%, their steepest daily decline since April 2025, after the bank reported quarterly revenue below analysts’ estimates. UK stocks also came under pressure ahead of the government budget due on Wednesday. At the open, the index had fallen 1.0% to 10,659.19 points, while the FTSE 250 slipped 0.2% to 24,458.36 points, according to Alliance News data. The blue-chip index’s losses later widened beyond the opening level, while upcoming financial announcements remained a focus of investor caution.
HSBC reported revenue of 18.6 billion dollars in the third quarter, compared with analysts’ estimates of 19 billion dollars, according to Reuters. The bank said revenue rose by 0.8 billion dollars from the same period in 2025, driven mainly by growth in net interest income. Pre-tax profit rose 32% to 9.6 billion dollars, with a positive contribution from exceptional items that had an impact of 1.4 billion dollars. The bank said these items included the non-recurrence of legal provisions from the comparable period. Net interest margin was steady at 1.57% compared with the third quarter of 2025. The chief executive said simplifying the group “enables greater capacity to invest and grow and deliver strong returns for shareholders.”
HSBC kept its 2026 net interest income guidance at at least 46 billion dollars. The guidance puts the income target in focus for markets after a sharp reaction to the gap between actual revenue and analysts’ estimates. Elsewhere in the sector, shares in Standard Chartered, NatWest and Lloyds fell between 1.1% and 2.2%, according to Reuters. The banking index fell 3.7% to its lowest level in four months. The contrast between HSBC’s performance and other bank stocks stood out, with the other three banks’ shares falling within a narrower range than HSBC’s.
In consumer goods, Reckitt Benckiser shares fell after the company cut its forecast for annual net revenue growth, according to Reuters. The company reported third-quarter net revenue of 3.36 billion pounds sterling, down 6.9% on a reported basis but up 3.2% on a like-for-like basis. The figures underscore the difference between reported revenue and like-for-like sales performance. EL7 data also show RBGLY shares closed at 14.74 on 26 October, with no currency or listing exchange specified. The share decline added to HSBC’s losses, putting two large index constituents under simultaneous pressure.
The moves come against a backdrop of UK inflation rising to 3.5% in the twelve months to September 2026, from 3.1% in August, according to the Office for National Statistics. Transport, particularly motor fuels, made the largest upward contribution to the annual change in both the Consumer Prices Index (CPI) and CPIH. Restaurants and hotels, by contrast, made the largest downward contribution. The office’s data also showed public sector net borrowing reached 24.5 billion pounds sterling in September, exceeding the Office for Budget Responsibility’s forecast for the month by 1.9 billion pounds. The price and borrowing figures add fiscal context as investors await the budget and its updated forecasts.
The UK government is due to present its budget to parliament on 28 October, alongside updated fiscal forecasts from the Office for Budget Responsibility. Reuters reported that investors are cautious ahead of the financial announcements amid rising borrowing costs and energy prices. The date comes as attention turns to how the new fiscal forecasts will shape the market’s reading of the UK outlook. The Bank of England’s Monetary Policy Committee meeting summary and minutes, along with its Monetary Policy Report, are due on 5 November. The Office for National Statistics has set 18 November 2026 for the next release of consumer inflation data.