Finance
UK's FTSE 100 rises as HSBC leads bank stocks rally
Published by Global Banking & Finance Review®
Posted on January 27, 2026
2 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 27, 2026
2 min readLast updated: January 27, 2026
FTSE 100 rises on banking gains as investors await US Fed's rate decision. Key market shifts include a rise in bank index and decline in mining shares.
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.
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.
The blue‑chip FTSE 100 closed up 0.6%, while the more UK-focused FTSE 250 added 0.2%.
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)
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.
Interest rates are the cost of borrowing money, expressed as a percentage of the total amount borrowed. They influence economic activity by affecting consumer spending and investment.
Corporate earnings refer to the profits that a company generates during a specific period, often reported quarterly or annually, which can impact stock prices and market performance.
The US Federal Reserve is the central bank of the United States, responsible for setting monetary policy, regulating banks, and maintaining financial stability.
Retail price trends indicate the changes in prices of goods sold in retail stores over time, reflecting inflation and consumer demand in the economy.
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