FTSE 100 Falls 0.75% to 10,686.54 as HSBC Weighs and Budget Looms

Key Facts

The FTSE 100 ended Tuesday, 27 October, down 0.75% at 10,686.54 points, while the FTSE 250 rose 0.93%, according to data cited by Reuters via MarketScreener. The decline came as investors awaited the UK budget, but the clearest pressure on the index came from HSBC after its revenue fell short of analysts’ estimates. The bank’s shares dropped 5.4% to their lowest level in about six months, making them the session’s biggest drag on the index. The bank reported third-quarter revenue of $18.6 billion, against estimates of $19 billion. Reuters attributed part of the shortfall to a slowdown in wealth management.

Tuesday’s session followed a 0.7% rise in the index to 10,767.33 points on Monday, 26 October, as investors awaited Chancellor John Healey’s first budget and the Federal Reserve’s decision, according to Reuters. Before that, the index closed down 0.3% at 10,690.36 points on 23 October, ending a two-week run of gains. That day’s decline coincided with Brent crude rising above $115 a barrel, according to Reuters via Euronext. The moves highlight the index’s mixed performance in the days before the budget announcement. Tuesday’s fall also did not reflect results from GSK and Unilever, as both companies reported their figures on 28 October, after the session closed.

GSK reported third-quarter sales of £8.887 billion, up 4% on a reported basis and 5% on a constant-currency basis. Performance varied across its units: specialty medicines sales rose 15% to £3.9 billion, while vaccine sales fell 2% to £2.6 billion. The company said total operating profit fell 16% and total earnings per share fell 21%, affected by substantial restructuring charges of £328 million. GSK linked the charges to its “Accelerate Growth” programme. The company reaffirmed its 2026 guidance, projecting sales growth of 3% to 5%, and growth in core operating profit and core earnings per share of 7% to 9% for each.

Unilever posted underlying sales growth of 5.2% in the third quarter, supported by volume growth of 2.9% and price increases of 2.3%. Revenue reached €13.3 billion, up 6.7% year on year. The company said higher commodity costs had driven an acceleration in price growth. Emerging markets recorded underlying sales growth of 9.5%, while sales in core foods rose just 0.1%, with volumes in the business down 1.1%. The figures paint a mixed picture across the company, with growth in emerging markets alongside weak food volumes.

Unilever raised its forecast for volume growth in 2026 to at least 3% and said underlying sales growth in the second half was expected to be about 5%. The outlook follows third-quarter growth that combined higher volumes and prices, while performance across the company’s units remained mixed. On fiscal policy, the UK Treasury confirmed that the budget would be delivered on 28 October 2026. The Treasury said the budget would comply with the fiscal rules and give businesses and households some of the stability needed to plan for the future. The following day, 29 October, the Bank of England is scheduled to publish Bankstats data for September 2026.

The budget comes amid government finance figures showing public sector borrowing of £24.5 billion in September 2026, up 7.7% from September 2025 and £1.9 billion above the Office for Budget Responsibility’s forecast. Central government debt interest payments totalled £10.9 billion in the same month, up 16.6% year on year and £2.0 billion above the office’s forecast. The data put net public debt at £3,005.0 billion at the end of September, equivalent to 94.0% of gross domestic product. That ratio was 0.7 percentage points below its level a year earlier. The figures show the fiscal backdrop ahead of the budget announcement as investors await its details.