1669744771 origin 1

FTSE 100 climbs on hopes of easing China COVID limits; HSBC leads earnings

origin 1

By Shashwat Chauhan and Shristi Achar A

(RockedBuzz via Reuters) – The internationally focused FTSE 100 edged higher on Tuesday, led by gains in commodity-linked stocks on the possibility of a less severe COVID decline in China, as HSBC Holdings outperformed the index after agreeing to sell stocks. its Canadian assets at RBC.

The blue-chip FTSE 100 finished up 0.5% to hit a record high on 13 September, while the domestically focused FTSE 250 midcap index finished down 0.6%.

Financial firms led gains on the FTSE 100, with HSBC Holdings and Standard Chartered rising 4.4% and 5% respectively.

Britain will change its regulation to allow banks to take more risk to help maintain the City of London’s status as a leading global financial centre, a government minister said on Tuesday.

HSBC announced the sale of its Canadian business to the Royal Bank of Canada for C$13.5 billion ($10 billion) in cash, paving the way for a potential shareholder payout later.

World markets were shaken on Monday as protests against tight COVID-19 restrictions flared up in major Chinese cities over the weekend.

Officials have pledged to address the growing dissent, saying China will speed up COVID-19 vaccinations for the elderly.

“The announcement added to expectations that perhaps this COVID surge may not be as bad and that supply chains and demand won’t be hit as badly,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

UK markets have rebounded sharply from October lows when a botched mini-budget sent markets into a tailspin as new leadership looks to restore investor confidence in the economy amid rising inflation and a major crisis of the cost of living.

Shares of base metal miners rose 3.1% to their highest level since June 10 as prices rebounded on support for China’s housing sector of major metal consumers. [MET/L]

Heavy oil majors BP and Shell rose 1.8% and 1.7%, respectively, as crude prices rose on hopes China eased its COVID controls. [O/R]

EasyJet fell 2.6% after the airline posted a full-year loss, while oil and gas services and engineering company John Wood Group Plc plunged 15.9% on weak near-term forecasts .

Wealth manager Record Plc jumped 11.1% after reporting higher pre-tax profit in the first half.

(Reporting by Shashwat Chauhan & Shristi Achar A in Bangalore; Editing by Saumyadeb Chakrabarty, Savio D’Souza & Maju Samuel)