Jan 27 (Reuters) - London's FTSE 100 gained on Tuesday, led by advances in heavyweight banking stocks, as investors geared up for a slew of corporate earnings and the U.S. Federal Reserve's rate
UK's FTSE 100 rises as HSBC leads bank stocks rally
Market Overview and Key Drivers
Jan 27 (Reuters) - London's FTSE 100 gained on Tuesday, led by advances in HSBC and other heavyweight banking stocks, ahead of a packed week of corporate earnings and the U.S. Federal Reserve's rate decision.
HSBC and Banking Stocks Performance
The bank index rose 2.4% to its highest level since May 2008. Shares in HSBC gained 2.9%, briefly lifting the bank's market value above $300 billion.
Economic Indicators and Fed Meeting
The blue‑chip FTSE 100 closed up 0.6%, while the more UK-focused FTSE 250 added 0.2%.
Retail Price Trends in the UK
The precious metal miners index fell 5.2% after hitting record highs in the previous session.
Meanwhile, Prime Minister Keir Starmer will fly to China on Tuesday evening in the first visit by a British leader to the Asian country 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. big-tech firms due this week.
Also in focus is the Fed's policy meeting, which begins on Tuesday and concludes on Wednesday. Most investors expect the U.S. central bank to hold interest rates steady.
Separately, all but two economists polled by Reuters still expect the Bank of England to cut its interest rate to 3.50% 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.
Among major movers, shares of Dr. Martens fell 11.6% to their lowest since June 2025, the biggest decline on the midcap index, after the bootmaker forecast broadly flat annual revenue growth following a dip in third-quarter sales.
(Reporting by Tharuniyaa Lakshmi in Bengaluru. Editing by Mark Potter)
