London’s stock market reached new heights on Tuesday, October 28, 2025, as the FTSE 100 index closed at a record 9,696.74 points after gaining 0.4 percent. This surge came mainly from strong banking sector performance, led by HSBC’s upbeat earnings report, while investors watched for major global events like US Federal Reserve decisions and tech giant earnings.
Market Rally Driven by Banks
The FTSE 100 climbed to its highest close ever, fueled by gains in banking stocks. HSBC shares jumped over 2.5 percent after the bank raised its 2025 profitability outlook, expecting net interest income of at least 43 billion dollars.
This positive news offset weaker areas like commodities. Other banks followed suit, with NatWest and Barclays also posting gains amid broader market optimism.
Investors reacted to HSBC’s third-quarter results, which showed robust interest and fee income despite some challenges. The bank’s confidence in future earnings helped lift the entire sector.
HSBC’s Key Financial Highlights
HSBC reported strong results for the third quarter of 2025, boosting investor sentiment. The bank upgraded its guidance, signaling better times ahead.
Here are some standout figures from HSBC’s earnings:
- Pretax profit hit around 8.5 billion dollars, beating expectations.
- Net interest income grew due to higher global rates.
- The bank announced plans for shareholder returns, including buybacks.
These numbers reflect HSBC’s focus on core operations after streamlining its business. Analysts noted the bank’s agility in a changing economic landscape.
In a table below, compare HSBC’s performance with recent quarters:
| Quarter | Pretax Profit (Billion USD) | Net Interest Income (Billion USD) |
|---|---|---|
| Q3 2025 | 8.5 | 10.8 |
| Q2 2025 | 7.2 | 10.1 |
| Q3 2024 | 6.8 | 9.5 |
This growth shows how HSBC benefits from rising rates worldwide.
Broader Economic Factors at Play
UK retail data added to the positive mood. Shop price inflation slowed to 1.0 percent in October 2025, down from 1.4 percent in September, thanks to discounts and competition.
Food prices eased, with ambient food inflation dropping sharply. Non-food items even fell slightly, helping consumers amid cost pressures.
Global oil booms and bank earnings contributed too. Stocks like BP and Shell saw minor lifts from energy trends, though commodities faced some headwinds.
These factors combined to push the FTSE 100 near 9,700 points during trading, a level not seen before.
Recent events, such as the Bank of England’s hints at rate cuts, have sparked rallies. This comes after strong UK retail sales data last week, which beat forecasts and fueled bets on monetary easing.
Investor Eyes on Global Events
Traders now focus on upcoming announcements. The US Federal Reserve’s policy decision on October 29, 2025, could influence global markets.
Earnings from tech leaders like Microsoft, Meta, and Alphabet are due soon. These companies hold massive market value, and their results might sway investor confidence.
In Europe, the European Central Bank’s moves add to the mix. Experts predict these events could either extend the rally or bring volatility.
Meanwhile, the UK’s upcoming budget in late November raises questions about business rates and consumer relief.
Expert Views and Market Sentiment
Analysts praised the FTSE 100’s resilience. One expert noted that HSBC’s outlook upgrade signals stronger banking profits ahead, despite global uncertainties.
Market watchers see this as part of a broader trend where UK stocks outperform European peers. The index has hovered around record levels for days, driven by rate cut expectations.
Social media buzz reflects optimism, with posts highlighting banking gains and economic stability. This sentiment aligns with recent data showing steady UK growth.
However, some caution about potential risks from geopolitical tensions or inflation surprises.
If you enjoyed this article or have thoughts on the market’s direction, share it with friends and drop a comment below. Your insights could spark great discussions.
