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Financials Keep FTSE 100 Steady After Five Straight Days of Losses
Published by Wanda Rich
Posted on June 14, 2022
2 min readLast updated: February 6, 2026
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Global Banking & Finance Review®
Company
Published by Wanda Rich
Posted on June 14, 2022
2 min readLast updated: February 6, 2026
Add as preferred source on GoogleBy Devik Jain
(Reuters) -UK shares steadied on Tuesday, with some positive impetus from financial stocks and several strong earnings updates, a day after economic slowdown concerns dragged the main British indexes to their fifth straight session of losses.
The FTSE 100 was up 0.3% by 0817 GMT, with shares in Asian-focused British bank HSBC gaining 3% to provide the biggest boost to the blue-chip index.
Oil majors BP Plc and Shell Plc rose 1.4% and 0.8% respectively, tracking volatile crude prices. [O/R]
The domestically-focussed mid-cap FTSE 250 index edged up 0.2%, hovering near its lowest level in more than three months.
Global stock markets have been rattled as investors price in aggressive central bank policy moves to quell inflation against a backdrop of the Ukraine crisis, concerned that this could lead to a global economic slowdown.
Despite these fears, the FTSE 100 has only declined 2.1% year-to-date compared to 15.4% drop in European Stoxx 600 and a 21.3% slide in U.S. S&P 500 index due to its heavy weighting in energy and mining companies.
“The outperformance will carry on. As inflation fears come up, people are struggling to look for assets which are closely correlated with real world assets to provide inflation protection and commodities are one source of that,” said Edward Park, chief investment officer at Brooks Macdonald Asset Management.
“The UK market … has been less exposed to some dramatic moves in the bond market because the markets still expect the Bank of England to worry as much about economic growth as it is about inflation.”
The central bank is expected to raise interest rates by 25 basis points (bps) to 1.25% on Thursday.
Paragon Banking jumped 8.6% after upgrading its 2022 forecasts and flagging strong new lending growth.
Housebuilder Crest Nicholson climbed 6.2% after forecasting higher adjusted profit.
DiscoverIE Group gained 4% after the electronic component manufacturer and supplier reported stronger full-year underlying pretax profit.
(Reporting by Devik Jain in Bengaluru)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK stock market.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power and affecting economic stability.
A central bank is a national financial institution that oversees the monetary system, manages currency, and implements monetary policy to control inflation and stabilize the economy.
Financial stocks are shares of companies in the financial sector, including banks, investment firms, and insurance companies, which often influence market trends.
Economic growth is an increase in the production of goods and services in an economy over a period, typically measured by GDP.
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