- Energy stocks fall 1%
- UK borrows less-than-expected
- Cranswick rises on upbeat FY profit outlook
- Sterling strengthens vs. dollar
- FTSE 100 wilts 0.4%, FTSE 250 slips 0.1%
Nov 21 (Reuters) - UK's FTSE 100 receded on Tuesday as lower oil prices pressured energy stocks, while Britain's borrowing picture opened a likely door for tax cuts ahead of a crucial budget update this week.
The large-cap FTSE 100 dropped 0.4% by 0926 GMT, while the mid-cap index slipped 0.1%.
Oil futures fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of an OPEC+ meeting this Sunday when the producer group may discuss deepening supply cuts.
Leading sectoral declines, heavyweight energy stocks lost 1.1% tracking oil prices.
The sterling rose 0.2% against the dollar adding further pressure to the exporter-heavy benchmark index.
Britain borrowed less than predicted by its budget forecasters in the first seven months of the financial year, data showed a day before finance minister Jeremy Hunt is expected to announce some pre-election tax cuts.
"This (borrowing figure) potentially provides some wiggle room for Chancellor Jeremy Hunt when he makes his announcements tomorrow," said Victoria Scholar, head of investment at Interactive Investor.
Prime Minister Rishi Sunak - who is expected to call an election next year - said on Monday that his attention was turning to tax cuts to help the stagnant economy after a slowing in Britain's high inflation rate.
"With a General Election looming, better-than-expected government finances, Sunak's year-end target to halve inflation already met, and the Conservatives struggling in the polls, the Chancellor may resort to some vote-winning tax cuts in tomorrow's Autumn Statement," Scholar added.
Hurting mid-caps, Workspace Group fell 3% after the London-focused flexible office-space provider posted a half-year loss.
IT services and consulting firm Softcat dropped 3% after J.P.Morgan downgraded the stock.
Cranswick shares rose 1.8% after the meat producer forecast annual profit at the upper end of current market estimates.
Shares of Capita rose 9.4% after the outsourcing firm plans to cut about 900 jobs globally as part of its cost-cutting drive.
Reporting by Siddarth S in Bengaluru; Editing by Eileen Soreng and Shailesh Kuber
Source: Reuters