British Shares Fall Ahead of Autumn Budget; HSBC, Reckitt Lead FTSE 100 Declines

12:48 PM EDT, 10/27/2026 (MT Newswires) -- London shares closed lower Tuesday, with the blue-chip FTSE 100 down 0.72%, as investors assessed earnings from some of the UK's largest companies. HSBC (HSBA.L) was the index's biggest decliner, falling 5.88% after reporting third-quarter results. For the three months ended Sept. 30, the British lender's profit after tax attributable to ordinary shareholders rose year over year to $7.09 billion from $4.87 billion, while net operating income increased to $17.79 billion. "Overall, HSBC printed a soſt set of Q326 numbers. PBT ex notable items was in line, but within this income missed consensus by c.2%, driven by lower NII and Wealth fee income, largely offset by better impairments. Cost was in line. All main targets and guidance for the year are reiterated. On capital, management announced a 10c dividend and a $1bn buyback, in line with consensus. CET1 print 13.9% was below consensus 14.1%, but management gave new guidance on Basel 3.1, which they now expect to deliver a positive impact of c.40-50bps, effective from 1 Jan 2027. Despite a weaker print today, we continue to see value in HSBC's franchise strength and expect it to benefit from the structural growth trend in Asia," commented BofA Securities, while affirming its buy rating on the bank. Reckitt Benckiser Group (RKT.L) was also among the biggest fallers, with shares 4.92% lower at closing, after the consumer goods group reported third-quarter net revenue of 3.36 billion pounds sterling, up 3.2% year over year on a like-for-like basis but down 6.9% on an IFRS basis. "A significant volume miss in Q3 (Lysol manufacturing constraints) combined with lowering of sales growth guidance for the full year (-50bps from top and bottom of the range) is disappointing, albeit the latter is already reflected in consensus. Reckitt's expectations for the cold and flu season have improved somewhat," RBC Capital Markets said. On the economic front, UK Chancellor John Healey is scheduled to deliver his first budget on Wednesday, with investors watching for potential tax measures and spending plans. Later in the week, investors will assess UK mortgage lending data and the latest house price figures ahead of the Bank of England's interest rate decision in the first week of November. In geopolitical news, Yemen's Iran-aligned Houthi movement said it launched a ballistic missile strike on Saudi Arabia's Ras Tanura refinery, claiming the attack sparked a fire at the facility. Saudi authorities have not confirmed the reported strike, although Bloomberg News reported that a fire near the oil terminal has been contained. The latest incident comes amid an escalation in Houthi attacks on Saudi Arabia since September.