Segro gains after results; FTSE 100 edged higher due to HSBC's boost
Investors awaited the release of the domestic inflation report later this week. The FTSE 100 in London rose for a 2nd consecutive day.
HSBC, the heavyweight in banking, rose 2% following its appointment of David Lindberg as CEO for its UK operations. Lindberg is a former NatWest executive and a veteran banker. The banks index rose 1.2% thanks to its shares.
Segro's shares rose 2.8% in the third-quarter, making it the best performing stock in the FTSE 100.
As of 1038 GMT the benchmark FTSE 100 index was up 0.2%, at 9,422 point. The domestically focused FTSE 250 index was not changed.
The UK's borrowing from April to September was at its highest ever level, except during the peak of the Coronavirus pandemic. These data put further pressure on the finance minister Rachel Reeves, as she prepares her budget for next month.
The data comes also ahead of UK’s price report, due on Wednesday. This is expected to show that the inflation rate in September was 4%, the highest of all the big, rich economies around the world and twice the Bank of England’s target.
Governor Andrew Bailey, along with his colleagues, say that the outlook for inflation remains unclear. It is therefore difficult to predict if and when interest rates will be cut.
As gold's rally stagnated, precious metal miners fell 4.9% and became the worst performing sector for the day.
Endeavour Mining, Fresnillo and other companies in the FTSE 100 fell by 4% and 3.5% respectively.
Serica Energy, a stock that is gaining in value among individual stocks, grew by 4.7% following the restart of production at Triton after a temporary shut down.
Shawbrook, meanwhile, is targeting a London IPO market cap up to 2 billion pound ($2.68 billion), signaling a strong appetite from investors for the lender's listing. (Reporting and editing by Medha Singh, Avinash P.
(source: Reuters)
