Finance
Banks support FTSE 100 ahead of Fed decision
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 10, 2025
2 min readLast updated: January 20, 2026
FTSE 100 rises with banking stocks ahead of the Fed's rate decision. HSBC and Standard Chartered lead gains, while UK GDP data is awaited.
Dec 10 (Reuters) - Britain's blue-chip FTSE 100 edged up on Wednesday, supported by gains in banking stocks as investors awaited the U.S. Federal Reserve's interest rate decision.
The FTSE 100 closed up 0.1%, while the domestically focussed FTSE 250 index dipped 0.4% to a two-week low.
Lenders HSBC and Standard Chartered rose 3.2% and 2.2%, respectively, following bullish recommendations from BofA Global Research.
The FTSE 350 banks index rose 1.8% and led gains among the sectors.
The Fed is widely expected to cut interest rates by 25 basis points to the 3.50%-3.75% range, but may signal a non-committal or even hawkish approach to next year's rate path given the division among policymakers.
The decision is due at 1900 GMT.
Traders are also looking ahead to UK GDP data for October on Friday. Signs of easing inflation and a weakening labour market have pushed traders to price in a 25 bps rate cut from the Bank of England next week, with further cuts seen next year.
Among other stocks, Pearson climbed 2% after J.P. Morgan named the education company one of its top picks in the media sector.
FirstGroup added 5% after the transport operator was named the preferred bidder for London's Overground suburban rail network in a contract worth about 3 billion pounds ($4 billion).
Berkeley rose 3.2% after the homebuilder maintained its annual guidance and voiced confidence in the long-term outlook for London, its key market.
Evoke surged 14% after the William Hill UK and 888 owner said it was reviewing strategic options including a potential sale, just weeks after tax hikes on online gaming and sports betting forced it to withdraw its financial guidance.
($1 = 0.7502 pounds)
(Reporting by Tharuniyaa Lakshmi and Sruthi Shankar in Bengaluru. Editing by Shinjini Ganguli and Mark Potter)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, measured by market capitalization.
Interest rates are the percentage charged on borrowed money or paid on savings, reflecting the cost of borrowing or the reward for saving.
The Federal Reserve, often referred to as the Fed, is the central banking system of the United States, responsible for monetary policy and regulating banks.
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period.
Banking stocks are shares of companies in the banking sector, which can be influenced by interest rates, economic conditions, and regulatory changes.
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