- FTSE 100 down 0.6%, FTSE 250 up 0.13%
- Reeves considering tax increases and spending cuts - reports
- Personal goods stocks up as LVMH drives luxury rally
- Entain bottoms FTSE 100 after Q3 gaming revenue growth slows
Oct 15 (Reuters) - London's FTSE 100 slipped on Wednesday as investors weighed mounting fiscal concerns, pointing to sticky inflation and potential tax hikes by the UK government, while digesting a mixed bag of corporate updates.
The benchmark FTSE 100 was down 0.5% by 1013 GMT, while the domestically focused FTSE 250 was up 0.13%.
On Tuesday, the International Monetary Fund slightly raised its growth forecast for Britain this year but lowered it for 2026. It said the Bank of England must be "very cautious" while considering future rate cuts as the country's inflation is projected to be the highest among the Group of Seven advanced economies in both 2025 and 2026.
Meanwhile, Britain's finance minister Rachel Reeves said she was looking at both tax rises and spending cuts for her budget on November 26.
Economists expect Reeves will need to raise about 30 billion pounds ($40.1 billion) through tax increases in the budget, after the government's borrowing costs jumped more than expected, a plan to cut welfare costs was dropped and signals that growth forecasts will need to be lowered.
In the market, LVMH, a bellwether for the luxury sector, reported better-than-expected sales in the third quarter, which positively impacted other luxury stocks.
UK's Burberry rose 6.6% to the top of the FTSE 100 while the broader personal goods sector outperformed peers by 6.2% gain.
IAG rose 1.3% after Morgan Stanley initiated coverage on British Airways and Iberia owner with an "overweight" rating, citing its lead among European airlines in profitability and cash returns.
PageGroup rose 7.2% to the top of the FTSE 250 after the recruiter posted third-quarter results that beat profit expectations.
On the flip side, Entain fell to the bottom of the FTSE 100, down 3.3%, after the British gambling firm reported a slowdown in gaming revenue in the third quarter.
An index of healthcare stocks led sectoral declines with a 1.9% fall. Drugmaker AstraZeneca slipped 2.3%.
Reporting by Sanchayaita Roy and Avinash P in Bengaluru; Editing by Leroy Leo
Source: Reuters