UK's FTSE 100 falls as energy stocks weigh; Autumn Statement in focus

UK's FTSE 100 erased early gains to edge down on Wednesday as heavyweight energy stocks fell on lower oil prices, while the market response to the interim budget update was largely muted. British finance minister Jeremy Hunt announced on Wednesday a bigger-than-expected cut in social security contributions and made incentives for business investment permanent in a bid to speed up the country's sluggish economy.

UK's FTSE 100 erased early gains to edge down on Wednesday as heavyweight energy stocks fell on lower oil prices, while the market response to the interim budget update was largely muted.

British finance minister Jeremy Hunt announced on Wednesday a bigger-than-expected cut in social security contributions and made incentives for business investment permanent in a bid to speed up the country's sluggish economy. "It's a very muted response, I think a lot of these announcements were already factored in by the market," said Giles Coghlan, chief market analyst at brokerage GCFX.

The pound fell 0.2% against the dollar. The large-cap FTSE 100 was last down 0.1%, while the mid-cap index climbed 0.8%.

British pub stocks including J D Wetherspoon, Marston's and Fuller, Smith & Turner rose between 2.7% and 1.6% after the finance minister said the government would freeze all alcohol duties until Aug. 1 next year. Spirits giant Diageo rose 1.3%.

NatWest Group fell 1.0% after Hunt said he would explore options for a Natwest retail share offer in the next 12 months. Oil and gas sector dipped 2.5% as crude prices tumbled after OPEC+ producers delayed a meeting on output planned for Sunday, raising questions about the future course of production cuts.

Software company Sage reported an 18% rise in its full-year underlying operating profit, sending its shares to a record high. HSBC lost 1.4% after RBC downgraded the Asia-focussed lender's stock to "sector perform" from "outperform".

Entain jumped 5.9% on a report that activist investors have built positions in the Ladbrokes-owner. Kingfisher slipped 6.5% after the home improvement retailer cut its annual profit forecast for the second time in three months.

Meanwhile, Intermediate Capital Group added 1.6% as the asset manager is set to join the FTSE 100 index in December, replacing Hargreaves Lansdown.