The FTSE 100 index experienced a positive trading session on Tuesday, marking its fifth consecutive day of gains. This upward momentum was primarily fueled by strong performances in bank stocks, as investors anticipate the Bank of England’s upcoming interest rate decision.
- The FTSE 100 rose by 0.3% on Tuesday.
- The index has now gained ground for five straight sessions.
- Bank stocks were a significant driver of the FTSE 100’s gains.
- Major banks such as Standard Chartered, NatWest, Barclays, HSBC, and Lloyds all saw their shares increase.
- Market expectations are for the Bank of England to hold rates steady at 4.5% at its upcoming meeting.
- Markets are pricing in a modest 51 basis point rate cut by the end of the year.
The sustained rise in the index, particularly driven by the banking sector’s positive performance in anticipation of the central bank’s decision, suggests investor confidence. The expectation that interest rates will remain unchanged in the short term, but with a modest cut anticipated later in the year, is contributing to a favorable market environment for certain sectors.