FTSE 100 watch: HSBC lends support to Footsie higher as sentiment recovers

Index rallies ahead of Budget announcement

FTSE 100 watch: HSBC lends support to Footsie higher as sentiment recovers

The UK benchmark index has kicked off the week in positive territory, recouping some of the previous session’s losses, ahead of Chancellor of the Exchequer Philip Hammond’s annual budget. HSBC Holdings (LON:HSBA) has been one of the session’s most notable risers after updating investors on its third-quarter performance.

FTSE 100 rallies

As of 12:33 GMT, the Footsie had added 139.29 points to stand 2.10 percent higher at 7,078.85. Sentiment has been upbeat today as Chancellor Philip Hammond prepares to deliver the Budget at 15:30 GMT. The BBC reports that Downing Street has said that all spending commitments to be set out in the Budget will be delivered ‘irrespective of a deal’ on Brexit.

Investors have also shrugged off reports that Germany’s Chancellor Angela Merkel will not stand for re-election as chair of her Christian Democratic Union party.

Proactive Investors quoted Joshua Mahony, market analyst at IG, as commenting that Merkel’s decision had “shaken confidence in the region,” and while her departure may not have any negative consequences, it added an element of uncertainty which could hold back confidence in the euro in the fourth quarter.

HSBC shares in demand

Heavyweight HSBC meanwhile is lending support to the FTSE 100 after reporting that its profits had climbed in the third-quarter of the year, as it continued to benefit from its focus on Asia.

“HSBC was alright and there were a few earnings that weren’t as grim as they’ve been over the past few weeks,” said Ian Williams, analyst at Peel Hunt, as quoted by Reuters. The lender’s shares are currently changing hands 5.54 percent higher at 638.53p.

The FTSE 100 was 1.94 percent higher at 7,074.48 points as of 12:55 GMT on Monday, 29 October 2018.

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