*

FTSE 100 down 0.3%, FTSE 250 down 0.03%

*

Reeves considering tax increases and spending cuts -

reports

*

Personal goods stocks up as LVMH drives luxury rally

*

Entain ( GMVHF ) down after Q3 gaming revenue growth slows

(Updates after markets close)

By Sanchayaita Roy

Oct 15 (Reuters) - London's FTSE 100 closed lower on

Wednesday as investors were cautious ahead of domestic GDP data

due Thursday, with fiscal concerns including sticky inflation

and the prospect of tax hikes weighing on sentiment.

The benchmark FTSE 100 fell 0.3%, while the

domestically focused FTSE 250 was down 0.03%.

Focus will be on the UK's gross domestic product estimate

for August which could offer clues on the Bank of England's

interest rate path after policymakers held rates steady at 4%

last month.

"UK GDP is expected to expand by 10 basis points in August.

Although the magnitude of the rise won't register on the Richter

scale, this would continue the stretch of economic expansion to

three consecutive months, a welcome development," said Michael

Field, chief equity strategist at Morningstar.

"Inflation remains high, as do interest rates, as the BoE

awaits assurance that inflation is under control before cutting

further."

On Tuesday, the International Monetary Fund said the BoE

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.

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 ( BBRYF ) advanced 3.3% and was among top

gainers in the FTSE 100 while the broader personal goods sector

outperformed peers by 3.6% gain.

PageGroup ( MPGPF ) rose 3.4% after the recruiter posted

third-quarter results that beat profit expectations.

Conversely, aerospace and defense stocks

declined for the fifth consecutive session with BAE Systems

leading losses on the FTSE 100.

Entain ( GMVHF ) fell 2.4% after the British gambling firm

reported a slowdown in gaming revenue in the third quarter.

Shares of Beazley dipped 2.5% with the broader

non-life insurers index leading sectoral losses

with 1.7% losses.