FTSE 100 Surges Amid Banking Gains and Economic Uncertainty

The FTSE 100 rose, driven by banking stocks, amidst key corporate earnings reports and the U.S. Federal Reserve's rate decision. While mining shares dipped, UK Prime Minister Keir Starmer heads to China to foster economic ties. Skepticism remains over global trade tensions and domestic economic indicators.

The UK's FTSE 100 index saw a significant rise on Tuesday, bolstered by gains in heavyweight banking stocks ahead of major corporate earnings and the U.S. Federal Reserve's upcoming rate decision.

Banking stocks led the advance, with HSBC Holdings performing notably well, while the FTSE 100 climbed 0.6% by late morning. However, the mining sector retreated from recent highs.

In another development, UK Prime Minister Keir Starmer is set to visit China, aiming to strengthen economic ties amid persistent global trade tensions. At the same time, analysts anticipate economic updates from the Bank of England.

(With inputs from agencies.)