Reports of progress in talks between Russia and Ukraine boosted London’s top indexes today.
The capital’s premier FTSE 100 index jumped 0.53 per cent to close at 7,193.47 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, soared 1.31 per cent to 20,471.25 points.
Negotiations between the Kremlin and Kyiv officials kicked off this morning following signs of a potential breakthrough in reaching a settlement.
A Ukrainian official said over the weekend Russian representatives are “beginning to talk constructively”.
Investors were betting the fresh round of negotiations could deliver more progress toward reaching a ceasefire or an end to the war in the East.
Banks were the big winners on the FTSE 100 today, driven by investors pouring into the sector as expectations of the Bank of England delivering a third rate hike in as many meetings on Thursday ramp up.
Lenders benefit from a higher interest rate environment as it allows them to charge more for loans and tends to widen their net interest rate margin.
High street banks Barclays and Lloyds were the best performers in the sector, climbing more than 4.95 per cent.
Short haul airline easyJet was among the biggest risers on the FTSE 250, advancing 4.52 per cent.
The overseer of the FTSE indexes announced Evraz, the mining company that counts Roman Abramovich as a top shareholder, confirmed it will be booted from the FTSE 100 today.