UK's FTSE 100 touches new peak as HSBC shines

UK's FTSE 100 touches new peak as HSBC shines

By Avinash P

(Reuters) -The UK's FTSE 100 hit an all-time high on Tuesday, helped by a jump in HSBC's shares after the lender boosted its income outlook, while investors awaited a slew of big-ticket events later in the week.

HSBC rose 3.1% after the lending giant boosted its income outlook and promised to shift into growth mode with its takeover of Hang Seng Bank in Hong Kong, despite a huge drop in third-quarter profit due to $1.4 billion in legal charges.

The blue-chip focused FTSE 100 rose 0.3% to hit an all-time high of 9,677.87 points as of 1221 GMT.

The UK's mid-cap FTSE 250 index was down 0.4%.

Global stocks eased after their recent rally as optimism around a US-China trade deal kept risk appetite supported. Investors now are looking ahead to earnings from Big Tech companies on Wall Street as well as rate decisions from several major central banks, including the Federal Reserve and the European Central Bank.

Closer home, data showed UK retailers cut their prices in October, helped by the biggest drop for food in almost five years, offering support to households as well as the Bank of England and the government.

Finance minister Rachel Reeves has said she will use her budget to bring down the cost of living.

"There have been signs that the UK economy is looking brighter but until the Chancellor opens her box next month, many businesses and investors will be keeping their fingers on the pause button," said Danni Hewson, head of financial analysis at AJ Bell.

Among other stocks, Airtel Africa rose 7.8% to a record high after the telecoms company reported a rise in half-year revenue and declared an interim dividend.

Spirax Group rose 3.5% after UBS upgraded the valve maker's stock to "buy" from "neutral" while raising its target price to 10,500 pence to 7,500 pence.

(Reporting by Avinash P in Bengaluru; Editing by Leroy Leo)