The UK’s top share index rose from a two-month low on Monday, joining in
a broader rally among risk assets sparked by progress in U.S. tax
reforms, which lifted shares in British banking stocks.
Financials were the biggest boost to gains, adding around 20 points to the index as shares in HSBC (HSBA.L), Barclays (BARC.L) and Lloyds (LLOY.L) all rose between 1 percent to 3 percent.
Banks are seen as the biggest beneficiaries of a cut in the corporate tax rate in the United States, and their shares also tend to see the biggest reactions when investors buy into risky assets.
On Monday, the pound was subdued ahead of
the Brexit summit, which in turn supported the FTSE 100. Shares in
heavyweight overseas earners British American Tobacco (BATS.L) and Diageo (DGE.L) advanced 0.4 percent and 0.7 percent respectively.
The blue chip FTSE 100 .FTSE index was up 0.8 percent at 7,358.81 points by 0935 GMT, in line with a broadly positive continental European market.
Banks are seen as the biggest beneficiaries of a cut in the corporate tax rate in the United States, and their shares also tend to see the biggest reactions when investors buy into risky assets.
Last week strength in sterling on the back of
optimism over Brexit talks weighed on the FTSE 100, which ended the week
with a 1.5 percent loss. The index fell to a two-month low as its
predominantly dollar-earning constituents were hit by a rise in the
currency.
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