FTSE 100 climbs to record level driven by banking gains

The UK’s FTSE 100 climbed more than 0.50% to a fresh record high on Tuesday, buoyed by strong gains in banks, miners and defence stocks. HSBC led the rally with a rise of over 4% after posting stronger-than-expected third-quarter results and raising its profitability outlook. Elsewhere, European equities ended slightly lower following record highs in the previous session, as investors digested mixed corporate earnings and monitored global trade and interest rate developments. The STOXX 50 slipped to 5 701, while the broader STOXX 600 fell 0.30% to 576. 

Pharmaceutical stocks underperformed, with Novartis tumbling 4.30% after reporting earnings below expectations. Roche and Novo Nordisk each dropped 2.50%, while BNP Paribas also fell 3.50% following a weak earnings report. Iberdrola closed notably higher after releasing its results. Nokia surged 20% after Nvidia revealed plans for a $1 billion equity investment in the company. In Germany, the DAX pared early losses to finish slightly lower at 24 279, as investors focused on corporate results and potential central bank actions. 

The US dollar index remained largely unchanged at around 98.8 points on Tuesday, as traders held back ahead of the FOMC meeting, where the Federal Reserve (Fed) is widely expected to implement another 25-basis-point rate cut on Wednesday. Attention also turned to Thursday’s planned meeting between President Donald Trump and Chinese President Xi. The dollar weakened sharply against the yen after Treasury Secretary Scott Bessent met Japan’s Finance Minister Satsuki Katayama to address foreign exchange volatility, while calling for ‘sound monetary policy,’ seen by markets as a subtle critique of Japan’s gradual approach to rate normalisation. Meanwhile, the greenback gained against the British pound as investors increased wagers on further Bank of England rate cuts.

Asian markets traded lower, with regional sentiment subdued ahead of key central bank decisions and ongoing geopolitical developments. Japan’s Nikkei 225 fell 0.58%, while Hong Kong’s Hang Seng Index slipped 0.57%. Meanwhile, China’s Shanghai Composite edged down 0.38%, as investors weighed mixed economic data and remained cautious over the pace of domestic recovery. 

Gold prices slipped for a third consecutive session, falling to around $3 951 per ounce, after reaching a record high last week. The pullback came as traders took profits and safe-haven demand eased amid optimism over progress in the US–China trade negotiations. Officials from both countries signalled that they had reached a preliminary framework covering tariffs and key trade issues during weekend talks in Malaysia. Despite the recent decline, gold remains up nearly 50% year to date, supported by expectations of further Fed rate cuts, ongoing geopolitical uncertainty, strong central bank buying, and concerns over currency debasement.

In the energy market, Brent crude oil traded around $64.33 per barrel, down roughly 13.40% year on year. The softer oil price reflects persistent demand concerns, subdued investor sentiment and broader market caution.

Locally, the JSE ended the day higher with the FTSE/JSE All Share Index advancing 1.02%, supported by solid gains in financial and mining counters. The Top 40 Index rose 1.06%, while the Resources Index climbed 2.42%, in line with the rebound in metals and energy markets. The rand firmed slightly, trading near R17.15 to the US dollar.