UK’s FTSE 100 rises, led by gains in banking stocks

The bank index gained 2.4 per cent to its highest level since May 2008

London’s FTSE 100 rose on Tuesday, led by gains in HSBC and other heavyweight banking stocks, ahead of a packed week of corporate earnings and the U.S. central bank’s rate decision.

The bank index gained 2.4 per cent to its highest level since May 2008. Shares in HSBC added 2.9 per cent, briefly lifting the bank’s market value above $300 billion.

The blue‑chip FTSE 100 closed up 0.6 per cent, while the more UK-focused FTSE 250 rose 0.2 per cent.

The precious metal miners index dropped 5.2 per cent after hitting record highs in the previous session.

Meanwhile, Prime Minister Keir Starmer headed to China on Tuesday evening in the first visit by a British leader to the world’s second largest economy in eight years, seeking to mend ties and reduce Britain’s dependence on an increasingly unpredictable U.S.

Trade concerns persist after U.S. President Donald Trump’s recent threats to hike tariffs on South Korean imports. Market participants are now looking to upcoming corporate earnings for clearer signals on business conditions, with results from U.S. tech firms due this week.

Also in focus is the U.S. central bank’s policy meeting, which begins on Tuesday and concludes on Wednesday. Most investors expect the country’s central bank to hold interest rates steady.

Separately, all but two economists polled by Reuters expect the Bank of England to hold its interest rate at 3.75 per cent in February.

On the data front, prices at British retailers rose this month at their fastest pace since February 2024, led by increases in food, furniture, health, and beauty products.