The FTSE 100 in London experienced a volatile trading session, ultimately closing nearly unchanged at 9,702 on Tuesday. This maintains its proximity to the highest point reached since mid-November. Investor caution prevailed as market participants analyzed statements by Bank of England Governor Andrew Bailey, who highlighted increased risks to the UK's financial system, particularly mentioning the exceedingly high valuations of technology companies.
UK banking stocks, particularly Lloyds and Barclays, led gains after the central bank revealed that all seven of the nation's largest lenders had successfully passed its stress tests. The Bank of England also announced a reduction in future Tier 1 capital requirements and indicated a forthcoming review of the leverage ratio, adding to the optimistic sentiment. Additionally, the telecommunications sector showed strength, with Airtel Africa and Vodafone Group experiencing gains of 2.1% and 1.7%, respectively. Land Securities saw an increase of 1.9%, supported by an average "Hold" rating from seven brokerages monitoring the stock.
Conversely, companies in the precious metals sector took a hit, with Endeavour Mining and Fresnillo being the most significant decliners, dropping by 4.9% and 3.3%, respectively.
