(Reuters) - The UK's FTSE 100 advanced on Wednesday, boosted by rebounding bank stocks, with aerospace and defence also aiding gains, after U.S. President-elect Donald Trump called for higher spending
UK's FTSE 100 Rises with Bank and Defence Stock Gains
(Reuters) - The UK's FTSE 100 advanced on Wednesday, boosted by rebounding bank stocks, with aerospace and defence also aiding gains, after U.S. President-elect Donald Trump called for higher spending from NATO allies.
The blue-chip FTSE 100 rose 0.2% as of 1040 GMT, while the domestically-focussed FTSE 250 midcap index dipped 0.4%.
Banks were the biggest boost on the FTSE 100, rising 1.7%, after falling more than 1% in the last session.
HSBC added 1.8%, hitting its highest level since 2008, and Barclays gained 2.5%.
Aerospace and defence advanced 1.4%, with firms such as Rolls-Royce and BAE Systems gaining after U.S. President-elect Donald Trump called for higher spending from NATO allies.
Limiting gains on the blue-chip index, Shell shed 1.4% after the energy major trimmed its liquefied natural gas production outlook for the fourth quarter and said oil and gas trading results are expected to be significantly lower than in the previous three months.
Meanwhile, yields on British government bonds stood at elevated levels, with the yield on the 10-year note hovering near its highest level in more than a year.
Gilt yields have risen in recent weeks as most investors expect the Bank of England to cut interest rates by only about half a percentage point this year, with inflation likely to hover above the central bank's 2% target.
Utilities, often traded as a bond proxy owing to their stable income regardless of the economic situation, dipped 1.4%.
Among other notable stocks, Ashmore Group lost 3.4% after Jefferies downgraded its rating on the emerging markets-focussed wealth manager to "hold" from "buy".
London-listed shares of Flutter Entertainment slipped 2.1% after the world's largest online betting company said it expects 2024 earnings at its fast-growing U.S. FanDuel brand to be sharply lower.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Janane Venkatraman)
