FTSE 100 falls as HSBC weighs, budget caution persists

Oct 27 - Britain's FTSE 100 underperformed European peers on Tuesday, weighed down by HSBC after it missed quarterly revenue estimates, while investors stayed cautious ahead of the government's budget.

The blue-chip FTSE 100 index fell 0.75% to 10,686.54 points, its biggest one-day decline in about a month. The midcap FTSE 250 gained 0.93%.

• HSBC fell 5.4%, its lowest in nearly six months, making it the biggest drag on FTSE 100 index

• The bank, Europe's largest, reported third-quarter revenue of $18.6 billion, missing analysts' estimates of $19 billion, hurt by a slowdown in its wealth business

• Bank stocks were mixed: NatWest Group and Lloyds Banking Group fell 1.5% and 0.3%, while Barclays firmed nearly 1%

• Britain's budget is due on Wednesday, with focus on key fiscal announcements against a backdrop of high borrowing costs and energy prices

• "Ultimately, UK companies need greater policy stability and confidence to invest. A relatively uneventful budget delivering that would not be a bad outcome," said Sue Noffke, Manager of the Schroder Income Growth Fund plc

• UK business minister Jonathan Reynolds said Britain and the EU were "finding a way through" concerns over the bloc's proposed "Made in Europe" rules that have raised uncertainty for British manufacturers

• Exhibitions group Informa rose 2.4% despite cutting its full-year revenue growth guidance to 3% from 6%, as security concerns in the Middle East forced the rescheduling of events in Saudi Arabia

• Dettol maker Reckitt fell 4.9% after cutting its annual net revenue growth forecast, dragging the personal care, drug and grocery sector 1.3% lower into negative territory

• Computacenter rose 1.6% after Stifel raised its price target on the IT services provider

• Elsewhere, US and European stocks were steadied by softer oil prices and expectations the Federal Reserve will leave rates unchanged on Wednesday

(Reporting by Darshan Kumar and Medha Singh in Bengaluru; Editing by Janane Venkatraman and Diti Pujara)