London, Feb 3, 2026, 07:52 GMT — Premarket
HSBC Holdings PLC shares looked poised to open Tuesday close to their peak, following a 1.5% jump to 1,305 pence in Monday’s session. The move reflects a wider rally in European financial stocks. (Reuters)
Banks have been carrying the load in European equities, with investors returning to lenders after early-month cross-asset volatility. The STOXX 600 hit a record close Monday, while banking stocks climbed 2%, hitting their highest since 2008. “Markets shrugged off some of the commodity selling and Europe came in with a much more positive tone,” said Steve Sosnick, chief market analyst at Interactive Brokers. (Reuters)
HSBC’s rally comes amid traders’ efforts to figure out if the rate narrative is shifting once more, and whether upcoming company results will support the current appetite for bank shares following a solid run.
HSBC climbed to a fresh 52-week high on Monday, though trading volume was 13.4 million shares—still shy of its 50-day average near 21 million, according to market data. The rally contributed to the FTSE 100 sealing a record close. (MarketWatch)
Markets kicked off the week nervously following steep drops in commodities, with gold and silver taking a hit, and oil prices sliding. CME Group hiked margin requirements—the cash traders need to hold futures positions—fueling more forced selling. This came shortly after U.S. President Donald Trump nominated Kevin Warsh as the next Federal Reserve chair, Reuters reported. (Reuters)
Chesnara announced on Monday it has finalized the acquisition of HSBC Life (UK) Limited, a unit HSBC had put up for sale amid a broader streamlining effort. Reuters reported last year that the deal was valued at 260 million pounds in cash. (TradingView)
HSBC’s American depositary receipts, traded in New York, closed Monday 1.8% higher at $89.60. (Yahoo Finance)
But this rally squeezes the margin for error. Should markets shift toward expecting quicker rate cuts, banks could lose momentum as net interest margins — the gap between loan earnings and deposit costs — tighten.
Traders are keeping an eye on whether metals and oil stay steady. Another round of forced selling in commodities could quickly spill over into equities, even if the main narrative remains “banks up, miners down.”
Attention now turns to the Bank of England’s rate decision on Feb. 5, followed by HSBC’s annual results on Feb. 25. Investors will watch closely for any signals on earnings momentum and capital returns. (Bank of England)
