Key facts
- The FTSE 100 was up 1.18% at 10,764.49 points by 1121 GMT, on track for its biggest one-day gain in about six weeks.
- Banks gained 4.3%, with HSBC, Standard Chartered, NatWest Group, Lloyds Banking Group and Barclays up between 3.6% and 4.8%.
- Precious metal miners rose nearly 6.2%, tracking a 3% rise in gold prices.
- Lion Finance Group gained 7.5% after announcing a 62 million Georgian lari ($24.2 million) buyback.
- Weir fell 7.7% after flagging shorter-term headwinds from Middle East conflict and Chilean mine disruptions.
- Metro Bank jumped 13.9% after reaffirming its targets, including return on tangible equity above 18% in 2028.
Britain's FTSE 100 rose 1.18% to 10,764.49 points by 1121 GMT on November 4, on track for its biggest one-day percentage gain in about six weeks, while the midcap FTSE 250 climbed 0.83% to a two-month high.
Banking stocks gained 4.3%, set for their biggest one-day gain in nearly six months, and provided the biggest lift to the blue-chip index. HSBC, Standard Chartered, NatWest Group, Lloyds Banking Group and Barclays rose between 3.6% and 4.8% each. The rally came a day before the Bank of England's policy decision, with markets largely expecting a 25-basis-point increase in rates.
"Banks have massively underperformed this year... if you do have a rate hike, it obviously increases that net interest income, which can be a bonus; it would be supportive," said Fiona Cincotta, senior markets analyst at City Index.
Precious metal miners rose nearly 6.2%, set for their biggest one-day gain in nearly three months, tracking a 3% rise in gold prices. The dollar slipped as the Democrats' sweep of the US midterm elections raised concerns over the prospect of tighter AI regulation and its potential drag on economic growth, according to the report.
Lion Finance Group rose 7.5% after the banking and financial services group announced a 62 million Georgian lari ($24.2 million) share buyback, lifting the stock among the FTSE 100's top gainers. Engineering firm Weir fell 7.7%, among the top FTSE 100 laggards, after flagging shorter-term headwinds from Middle East conflict and Chilean mine disruptions, despite maintaining its annual outlook. Metro Bank jumped 13.9% to lead the midcap index after reaffirming all its targets, including return on tangible equity of more than 13% in 2026, over 15% in 2027 and above 18% in 2028.