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FTSE 100 up 0.6%, FTSE 250 flat
Bank index reaches highest level since May 2008
Dr Martens drops on flat 2026 revenue forecast
PM Starmer heads to China to repair ties
Jan 27 (Reuters) - London’s FTSE 100 gained on Tuesday, led by advances in heavyweight banking stocks, as investors geared up for a slew of corporate earnings and the U.S. Federal Reserve’s rate decision later this week.
The bank index (.FTNMX301010) was up 2.2%, climbing to its highest level since May 2008, with HSBC Holdings (HSBA.L) gaining 2.9% and NatWest Group (NWG.L) and Lion Finance (BGEO.L) rising over 2% each.
The blue-chip FTSE 100  (.FTSE) was up 0.6% at 11:19 GMT, while the more UK-focused FTSE 250 (.FTMC) was little changed.
Mining shares retreated from recent highs, with the precious metal index (.FTNMX551030) and industrial metal miners (.FTNMX551020) falling 2.2% and 0.7%, respectively. Meanwhile, Prime Minister Keir Starmer will fly to China on Tuesday evening in the first visit by a British leader to the Asian country in eight years, seeking to mend ties with the world’s second-largest economy and reduce Britain’s dependence on an increasingly unpredictable U.S. Trade concerns persist after U.S. President Donald Trump’s recent threats to hike tariffs on South Korean imports, prompting investors to look towards upcoming corporate earnings for clearer signals on business conditions.
Also on investors’ minds is the Fed’s policy meeting, due to begin on Tuesday and end with a policy update on Wednesday, with most investors expecting the U.S. central bank to hold interest rates steady. Separately, all but two economists polled by Reuters still expect the Bank of England to cut its interest rate to 3.50% in February. Meanwhile, data showed prices at British retailers rose at their fastest pace since February 2024 this month, led by a pick-up in food, furniture, health and beauty product costs. Among notable movers, shares of Dr. Martens (DOCS.L) fell 12% to the bottom of the midcap index as the bootmaker forecast broadly flat annual revenue growth after its third-quarter sales dipped.

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UK's FTSE 100 rose 0.6% on banking gains, with the bank index reaching its highest since May 2008. HSBC, NatWest, and Lion Finance saw significant increases. Meanwhile, Dr. Martens shares dropped 12% due to a flat revenue forecast. Investors are focused on upcoming corporate earnings and the U.S. Federal Reserve's rate decision, with expectations of steady interest rates. Trade concerns linger as PM Starmer visits China to strengthen ties. Retail prices in the UK rose at their fastest pace since February 2024, driven by food and other costs.

UK's FTSE 100 rises on banking gains as investors eye US Fed decision