- FTSE 100 up 0.3%; FTSE 250 mid-cap up 0.8%
March 18 (Reuters) - UK shares advanced on Tuesday, with the blue-chip index set for a fourth straight daily gain, helped by bank stocks ahead of a rate decision by the Bank of England (BoE) later this week.
The blue-chip FTSE 100 rose 0.3%. Shares of top lenders HSBC , Barclays , NatWest and Lloyds' gained between 1% and 2.2%, offering the biggest boost to the index.
A perky sterling kept gains in check for the internationally-focussed firms, while the more domestically-inclined FTSE 250 mid-cap climbed 0.8% to a one-week high.
British stocks are gaining ground alongside broader markets that plummeted earlier this month, largely due to fears that a trade war waged by President Donald Trump on multiple fronts would cause an economic slowdown in the U.S.
In a busy week for central bank meetings, the centrepiece will be the Federal Reserve's policy decision on Wednesday and any indications on future interest rate cuts to support growth will be key.
In the UK, the BoE's rate decision will be in focus on Thursday, a day after the OECD said Britain's economy will grow more slowly than previously expected in 2025 and 2026.
While both central banks are expected to stand pat on interest rates this week, traders have priced in at least two rate cuts from both the BoE and the Fed this year.
Among individual stocks, IT software services provider Bytes Technology surged 18.5% after posting double-digit growth in full-year operating profit.
Sabre Insurance jumped 6.5% after the firm announced its first ever share buyback after annual profit more than doubled.
Close Brothers' shares plunged nearly 20% to become the top loser on the FTSE small-cap index , after the British lender raised its estimate for legal costs this year as it grapples with uncertainties around claims related to motor finance regulations.
The pan-European STOXX 600 firmed about 0.7% ahead of a parliamentary vote on historic debt reforms intended to stimulate growth in the region's largest economy.
Later in the day, Britain's Labour government is expected to announce sweeping welfare cuts, a prelude before a fiscal update on March 26 when Finance Minister Rachel Reeves is likely to announce a lowering of Britain's official economic forecasts in her budget update speech.
Reporting by Medha Singh in Bengaluru; Editing by Sonia Cheema
Source: Reuters