Utility, real estate stocks lead London stocks lower

The blue-chip FTSE 100 had dropped by 0.6% to 8,264.5 points, while the domestically-focussed FTSE 250 index had declined 0.5%

London stocks dropped on Tuesday, dragged by weakness in the utility and real estate sector, while investors await speeches from Bank of England officials later in the day.

The blue-chip FTSE 100 had dropped by 0.6% to 8,264.5 points by 1000 GMT, while the domestically-focussed FTSE 250 index had declined 0.5%. Both hit one-week lows.

The benchmark was set to decline for a third consecutive day, which would mark its longest losing streak in more than a month.

The utilities sector slipped 1.5% and was the biggest drag, while real estate stocks slid 1.2%.

Investors are moving to the sidelines due to the uncertainty around the UK budget due on October 30.

This weakness has a lot to do with the UK budget and the impact that it can have on public borrowing and debt restructuring in the UK, according to Daniela Hathorn, senior market analyst at Capital.com.

Keeping overall losses in check, precious metal miners added 0.6% after gold prices hovered near a record-high on safe-haven demand.

Among individual stocks, Hunting Plc plunged 18% to a more-than-seven-month low after the energy services firm cut its annual profit outlook.

Meanwhile, Morgan Sindall climbed 14% to a record-high after the construction and regeneration company said it expects 2024 results to exceed its previous forecast.

A slew of Bank of England speakers are scheduled to speak today, including Governor Andrew Bailey at 1325 GMT, monetary policy member Megan Greene at 0915 GMT, and Deputy Governor Sarah Breeden at 1915 GMT.

In the U.S., investors also remained on guard and rushed to safe-haven assets such as gold and bonds due to the uncertainty around the Presidential election.