On Tuesday, the FTSE 100 index experienced a 0.3% increase, building on Monday's 0.5% rise and outperforming other European markets. This upward trend was primarily driven by gains in the banking and energy sectors. The index received further support from a depreciating British pound, which followed UK government borrowing figures that surpassed expectations, thereby benefiting exporters.
A significant contributor to these gains was HSBC, whose shares rose by 1.6%. This uptick occurred after the appointment of David Lindberg, previously the head of retail banking at NatWest, as CEO of HSBC's UK division, concluding a prolonged leadership search. Additionally, Barclays raised its price target for HSBC to 1,200 pence, attributing this to anticipated stronger net interest income and potential growth from a fully integrated Hang Seng unit. Other UK banks showed positive movements as well, with Barclays increasing by 1.3%, NatWest by 0.5%, Standard Chartered by 0.4%, and Lloyds by 0.3%. Oil companies Shell and BP also experienced gains, with increases of 0.4% and 0.5%, respectively.
Conversely, Coca-Cola HBC's stock declined by over 1% following its announcement of plans to acquire a majority stake in an African bottler, prompting investors to take profits.
