HSBC's Profit Surge Boosts UK Stock Market Amid Mixed Sector Performances
The UK's FTSE 100 index rose 0.2% led by financials after HSBC's profit exceeded estimates and announced a $3 billion buyback. Meanwhile, industrial metal miners and oil sectors struggled, with BP reporting a profit decline. Pearson saw a rise due to strong sales performance.
On Tuesday, the UK's benchmark FTSE 100 index made modest gains, driven largely by financials, notably HSBC, which reported a stronger-than-expected third-quarter profit and a $3 billion buyback plan. As of 0830 GMT, the index climbed 0.2%, while the FTSE 250 midcap index saw a 0.3% decline.
HSBC Holdings surged by 3.4%, following its profit report attributed to rising wealth and wholesale banking revenue, lifting the broader banking sector by 2.2% early in the day. Other banks like Standard Chartered and Prudential experienced increases of 1.7% and 0.6%, respectively.
Conversely, industrial metal miners dropped 0.6% as base metal markets awaited upcoming Chinese stimulus details and U.S. election outcomes. The oil and gas sector fell 0.2% after BP announced a nearly four-year low profit drop of 30% in its third quarter. Pearson shares rose nearly 2% on the back of strong sales growth. Budget insights from Finance Minister Rachel Reeves are anticipated to influence the economic landscape further.
(With inputs from agencies.)