FTSE 100 Holds Steady Amid Banking Gains and Midcap Slips

The FTSE 100 remained flat, buoyed by banking stocks despite midcap shares declining. HSBC boosted bank shares with a significant rise. InterContinental Hotels' share buyback plan underwhelmed investors. Meanwhile, wage growth in the UK quickened, leading the Bank of England to approach rate cuts cautiously.

The UK's top stock index, the FTSE 100, closed flat on Tuesday. Banking stocks offered support against losses, while midcap shares dropped amid investor caution over interest rate cuts due to rising wage growth.

The FTSE 100 remained largely unchanged, although the FTSE 250 slipped by 0.3%. Banking stocks saw a 1.5% rise, lifted by HSBC's performance, which reached a new multi-decade high as restructuring efforts pleased investors.

InterContinental Hotels saw a 4.5% decline, the largest drop on the FTSE 100, with its $900 million share buyback falling short of expectations. UK wage data revealed accelerating growth, prompting the Bank of England to keep interest rates steady despite a frail economy.