London’s main index the FTSE 100 pushed higher through Tuesday morning, up 0.6% by midday as banks led the charge. The FTSE 250 barely moved while smaller companies on AIM fell 0.4%.
HSBC jumped 2.9% and Prudential climbed 1.9%, both benefiting from stronger trading across Asian markets overnight. UK-focused lenders joined the rally, with NatWest and Barclays adding 2.0% and 1.5% respectively.
The positive mood across Asia hit a snag in South Korea after Washington slapped 25% tariffs on imports from the country. The Trump administration accused Seoul of breaking commitments made in last year’s trade deal, rattling markets with Korean exposure.
Mining stocks retreated after Monday’s strong run as commodity prices cooled. Fresnillo dropped 2.9% and Antofagasta shed 1.6%, giving back some of the previous session’s momentum as gold stabilised following recent gains.
Burberry gained 1.1% after Barclays upgraded the fashion retailer to ‘overweight’, raising its target price to 1,450p. The analyst move comes as the brand works through a difficult period for luxury goods.
Paragon Banking Group slipped 1.4% on the FTSE 250 despite confirming its full-year guidance. First-quarter lending rose 6.9% to £724 million, with commercial lending up 18% to £299 million offsetting a modest 0.4% increase in buy-to-let mortgages.
Facilities management firm Mitie edged down 0.2% after reporting revenue climbed 10% to £1.45 billion in the three months to end-December. The company maintained it’s on track to hit financial targets backed by a record order book.
Betting group Evoke tumbled 6.2% after flagging the impact of November’s UK budget. Chief executive Per Widerstrom said the measures dealt a “significant blow” to the regulated gambling sector. Revenue grew just 2% to £1.78 billion for the year, while expected Ebitda of £355-360 million represents a 15% annual gain. Peel Hunt analysts moved their rating to ‘under review’ from ‘buy’.