- HSBC Holdings falls on annual profit miss
- Glencore falls after annual earnings drop
- U.S. Federal Reserve policy meeting minutes awaited
- FTSE 100 down 0.6%, FTSE 250 flat
Feb 21 (Reuters) - The UK's FTSE 100 fell on Wednesday, as disappointing earnings updates from HSBC Holdings and Glencore weighed on banking and mining stocks, while investors awaited the minutes from the U.S. Federal Reserve's last meeting for clues on its policy outlook.
The blue-chip FTSE 100 index slid 0.6%, as of 0854 GMT, while the mid-cap FTSE 250 index was flat at 19,111.67.
HSBC Holdings lost 6.6%, set for its biggest one-day drop in more than a year, after the lender's annual profit missed market estimates, hit by a hefty $3 billion charge from its stake in a Chinese bank.
"Backing out a lot of the mess, it looks like (HSBC's) performance was a little worse than expected with higher operating costs more than offsetting slightly better impairments," noted Matt Britzman, equity analyst at Hargreaves Lansdown.
"Costs are forecast to rise 5% and loan loss levels are expected to tick higher. Overall, that paints a mixed underlying picture that looks to be a little worse than the current consensus has built-in."
Glencore dropped 5.8% as the miner said lower commodity prices had halved its earnings last year, and slashed its payout to investors, as the company saves to fund the acquisition of a 77% stake in Teck Resources' metallurgical coal business.
Financials and base metal miners dropped 3.7% and 2.7%, respectively, to lead declines among sectors.
Bucking the trend, Barclays extended gains for a sixth straight session, up 1.9% to hit a near seven-month high, after the bank reported its earnings on Tuesday.
Concerns over a delay in the timing of interest rate cuts have kept investors on the edge this week, with markets now awaiting comments from Bank of England monetary policy member Swati Dhingra and Fed policy meeting minutes, both due later in the day.
Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi Aich
Source: Reuters