FTSE 100 today: Stocks fall further as HSBC, Reckitt drag; budget, Fed caution

British stocks experienced further declines on Tuesday as HSBC and Reckitt Benckiser, the FTSE 100's two largest fallers, suffered from disappointing results. Caution surrounding the upcoming UK budget and Federal Reserve decisions dominated market sentiment, overshadowing hopes that Middle East diplomacy could prevent a resurgence in US-Iranian hostilities.

The FTSE 100 index fell by 0.95% as of 09:00 ET (13:00 GMT). Germany's DAX index climbed 0.31%, while France's CAC 40 index increased by 0.32%. The British pound weakened by 0.08%, trading at $1.3331. HSBC, the biggest weight on the index, hit an intraday low of 1263.60p. Despite a 32% increase in pretax profits to $9.63 billion, the bank's results fell short of analysts' expectations, and its CET1 capital ratio declined to 13.9% from 14.1%.

Reckitt Benckiser, which reduced its full-year like-for-like sales growth forecast to 3.5%-4.5% from 4%-5%, experienced a 4.5% drop after facing Lysol manufacturing constraints in North America. Standard Chartered, NatWest, and Barclays were also impacted by the market downturn. Iran's navy reported an oil tanker fire following a mine collision east of the Strait of Hormuz, claiming it entered a restricted zone with navigation shut off.

Russian President Vladimir Putin echoed Iran's criticism of Western sanctions at a Moscow gas summit. Saudi Arabia's coalition claimed the destruction of two Houthi ballistic missiles near Riyadh, while the Houthis asserted responsibility for a strike on the Saudi Arabian oil refinery, Ras Tanura, citing massive fires. Supreme Leader Mojtaba Khamenei urged Iran's security chief, Mohsen Rezaei, to secure Iran's rights and interests to end the conflict.

Qatar called on Iran to halt threats against Gulf states and open the Strait of Hormuz, according to Foreign Ministry spokesman Ibrahim Sultan Al-Hashmi. Iran's Foreign Ministry accused the United States of lacking sincerity in negotiations, stating that Tehran has "never closed the door" to diplomacy. Overnight, Saudi Arabia's coalition reported intercepting three Houthi ballistic missiles and four drones targeting southern Saudi Arabia.

The British Retail Consortium reported a significant rise in shop price inflation to 2.1% in October, a 2.5-year high. Helen Dickinson, CEO of Vistry Group, urged the Chancellor to act before the upcoming Budget, expressing concerns about the UK's medium-term fiscal situation. NCC Group appointed CFO Guy Ellis as CEO, anticipating a fiscal 2026 adjusted core profit that exceeds expectations following the Escode sale.

Informa revised its full-year underlying revenue growth outlook to approximately 3% from 6%, citing Middle East tensions causing further event rescheduling, while maintaining its earnings growth target.