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FTSE 100 down 0.7%, FTSE 250 off 0.5%

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Pound, gilt yields down after finance minister's remarks

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BP down despite third-quarter profit beat

Nov 4 (Reuters) - London stocks dipped on Tuesday

despite a sharp drop in the pound following finance minister

Rachel Reeves' comments, as equities around the world tumbled in

a broader risk-off move.

The blue-chip FTSE 100 dipped 0.7% by 1120 GMT, on

track for its biggest one-day drop in over two weeks, if losses

hold. The midcap index also slid 0.5%.

Industrial metal miners bore the brunt of the

selling pressure, down 2.3%, as a stronger dollar sent copper

prices tumbling more than 2%.

Heavyweight banks lost 1.2%, with HSBC ( HSBC )

, Standard Chartered ( SCBFF ) and Barclays ( BCS ) all

down more than 1% each.

The sentiment was grim all across Europe, with bourses in

Germany, France and Italy down with

the pan-continental STOXX 600 hitting its lowest since

mid-October.

U.S. stock index futures were also down more than 1% each.

Meanwhile, the pound and UK government bond yields

dipped after Rachel Reeves warned of "hard choices" in an

unusual speech for a finance minister to make just three weeks

before delivering her second annual budget.

"Her speech was as much about managing expectations as

setting direction," said Nigel Green, CEO of deVere Group in a

note.

Looking ahead, the Bank of England is expected to pause its

rate-cutting cycle on Thursday, though recent softer inflation

and wage data could strengthen the case for a cut.

Among individual stocks, Diversified Energy jumped

9.6% after the oil and gas company hiked its annual profit

forecast.

Energy giant BP reported a smaller than expected fall

in third-quarter underlying profit. Its shares, however, were

last down 0.5% after rising about 1% earlier in the day.

Associated British Foods ( ASBFF ) fell 2.6% after the company

said it could separate its Primark fashion shops from its food

businesses and reported a 13% drop in full-year profit.