London's FTSE 100 bogged down by GSK, Unilever; budget, Fed in focus

FTSE 100 Dips as Unilever, GSK Lead Declines; Budget and Fed Decision in Focus

Market Overview and Key Drivers

Oct 28 - London's FTSE 100 slipped on Wednesday, with Unilever and GSK leading declines after their quarterly results, in a cautious market ahead of finance minister John Healey's first budget and the US Federal Reserve's interest rate decision.

The blue-chip FTSE 100 index fell 0.3% to 10,652.43 points by 0954 GMT, while the midcap FTSE 250 inched up 0.1%.

UK Budget Expectations

• Healey planned to remove fixed gas standing charges from household energy bills from 2027, The Telegraph reported

• He is expected to announce a cautious budget, trying to avoid more bond market pressure, with banks and gambling firms among those that could be taxed more

Market Sentiment

• "It's really a waiting game... We're not expecting massive moves today and it's unlikely we'll see too many surprises," said Nick Saunders, CEO of investment platform Webull UK

Company Performance Highlights

Gainers

• Standard Chartered gained 2.8% after the lender said it expects full-year operating income growth to exceed 7% — above its prior 5%-7% guidance

Decliners

• Unilever fell 2.2% after reporting softer results in its foods business, dragging the personal care, drug and grocery sector down nearly 1.2%

• GSK bottomed the FTSE 100 with a 5.7% slump as its pipeline-build push and growth plans via a £1.9 billion ($2.52 billion) cost-savings drive failed to convince investors

• The pharmaceutical and biotechnology sector declined 1.7%

Sector Movements

Energy Sector

• Brent crude futures rose 1.2% to $115.24 a barrel after an attack on a Saudi Arabian refinery renewed concerns over potential supply disruptions

• The broader energy sector was among the few gainers, rising 0.2%

Other Sensitive Sectors

• "Financials, house builders, utilities and defence stocks are likely to be the most sensitive," Saunders said

Global Market Focus

US Federal Reserve Decision

• Markets will closely watch the Fed's monetary policy meeting, where it is widely expected to hold interest rates steady

Reporting

(Reporting by Darshan Kumar in Bengaluru; Editing by Joyjeet Das)