FX.co ★ FTSE 100 Hits Highest Level Since November

London's FTSE 100 saw a modest rise of 0.2% on Tuesday afternoon, reaching 9,720 points, the highest level since mid-November. This upturn was primarily driven by gains in the UK banking sector, following the 2025 Bank Capital Stress Test results, which affirmed the sector's "robust health." The test indicated that UK banks could sustain their support for the economy even under scenarios of significantly adverse economic and financial conditions. As a result, shares in Lloyds Banking Group increased by 1.5%, Barclays by 1.4%, Standard Chartered by 1.2%, NatWest by 1.2%, and HSBC by 0.8%. In addition, Land Securities saw a rise of over 2%, topping the index, following an average "Hold" rating from seven brokerages covering the stock. Despite these gains, investor sentiment remained cautious as markets processed remarks from Bank of England Governor Andrew Bailey. He highlighted the increased risks to the UK financial system this year, attributed to inflated valuations in companies investing in AI. Bailey warned that the UK's stock market could experience negative "spillover" effects should an AI-driven market bubble burst in the United States.