FTSE 100 up on hopes of less stringent COVID curbs in Chinawritten by Bella Palmer
The blue-chip FTSE 100 closed 0.5% up to hit its highest level Sept. 13, while the domestically focused FTSE 250 midcap index ended 0.6% lower
The internationally focused FTSE 100 rose on Tuesday, led by gains in commodity-linked stocks on the possibility of less stringent COVID curbs in China, while HSBC Holdings topped the index after agreeing to sell its Canadian business to RBC.
The blue-chip FTSE 100 closed 0.5% up to hit its highest level since Sept. 13, while the domestically focused FTSE 250 midcap index ended 0.6% lower.
Financial companies led the gains on the FTSE 100, with HSBC Holdings and Standard Chartered climbing 4.4% and 5%, respectively.
Britain will change its rulebook to allow banks to take more risks to help to keep the City of London's status as a leading global financial centre, a government minister said on Tuesday.
HSBC announced the sale of its Canadian business to Royal Bank of Canada for C$13.5 billion ($10 billion) in cash, paving the way for a potential bumper payout for shareholders later down the line.
World markets were rattled on Monday as protests against strict COVID-19 restrictions flared up in major Chinese cities over the weekend.
Officials have come out with efforts to address the rising dissent, saying China will speed up COVID-19 vaccinations for elderly people.
The announcement has added to expectations that perhaps this wave of COVID might not be as bad and that supply chains and demand won't take too much of a hit, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
British markets have sharply recovered from their October lows, when a bungled mini-budget sent markets into a tailspin, as new leadership tries to restore investor confidence in the economy amid surging inflation and a severe cost-of-living crisis.
Base metal miners' shares climbed 3.1% to their highest level since June 10 as prices rebounded on support for the property sector in top metals consumer China.
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