FX.co ★ FTSE 100 Rises Led by Banks

On Friday, the FTSE 100 experienced a 0.5% increase, buoyed by the rise in banking shares despite the downward pressure on miners due to declining metal prices. Banking stocks were bolstered by diminishing expectations of global interest rate cuts and a general shift towards risk-sensitive assets. Market participants responded to President Trump's decision to nominate Kevin Warsh to replace Jerome Powell as the Federal Reserve chair. Warsh is perceived as a more hawkish choice, anticipated to favor lower interest rates. Among the banking sector, Lloyds Banking saw a 2.5% rise, Natwest climbed 1.8%, Barclays edged up by 1.3%, Standard Chartered increased by 1%, and HSBC Holdings rose by 0.8%. Additionally, Diageo registered a 2.5% gain. Conversely, mining stocks suffered as prices for gold, silver, and copper fell, leading to a 7% decline for Endeavour, nearly 6% for Fresnillo, and a drop of between 2% and 3.5% for Antofagasta, Anglo American, Glencore, and Rio Tinto. Over the week, the FTSE 100 advanced by 0.6%, and for January, the index marked a growth of approximately 2.7%.