On Tuesday, London’s FTSE 100 experienced an increase for the second consecutive day, driven by advancements in warehousing group Segro and HSBC, as investors anticipated the forthcoming domestic inflation report scheduled for later in the week. Heavyweight HSBC rose 2% after hiring banking veteran and former NatWest executive David Lindberg to become the CEO of its UK business, powering a 1.2% rise in the banks index. Segro reported improved rent signing in the third quarter, sending its shares up 2.8% to become the best performer in FTSE 100. The benchmark FTSE 100 was up 0.2% at 9,422 points as of 1038, while the domestically focused FTSE 250 was little changed.

The UK’s borrowing for the period from April to September reached its highest level on record, aside from the peak experienced during the coronavirus pandemic. This data intensifies scrutiny on finance minister Rachel Reeves as she approaches the upcoming budget presentation next month. The data arrives in advance of the UK’s price report on Wednesday, anticipated to reveal an inflation rate of 4% for September, marking the highest rate among major advanced economies and double the target set by the Bank of England. Governor Andrew Bailey and his colleagues assert that the inflation outlook remains ambiguous, complicating predictions regarding the timing of potential interest rate reductions.

Precious metal miners slid 4.9% to become the worst performing sector of the day as gold’s rally stalled. Endeavour Mining fell 4% and Fresnillo declined 3.5%, respectively, leading the losses in the FTSE 100. Among individual stocks, Serica Energy advanced 4.7% after the oil company resumed production at the Triton offloading vessel following a temporary shutdown.

Meanwhile, Shawbrook is targeting a market cap of up to 2 billion pounds in its London IPO, signalling a strong investor appetite for the lender’s listing. The combination of strong corporate performances, sectoral movements, and anticipation around the UK inflation report contributed to a mixed yet cautiously optimistic market sentiment in London.