London, Jan 29, 2026, 07:57 GMT — Premarket
HSBC’s London-listed shares (HSBA) slipped 1.46% on Wednesday, finishing at 1,258.6 pence. The drop trimmed some of this week’s recent gains but kept the stock close to its year-to-date peak ahead of Thursday’s session. (Hargreaves Lansdown)
The pullback is significant since HSBC has led a surge in UK banks, making it one of the biggest contributors to the FTSE 100’s gains. On Tuesday, shares climbed to a record 12.77 pounds, briefly lifting the bank’s market cap past $300 billion. That move put HSBC almost level with AstraZeneca for the highest valuation on the blue-chip index. (Reuters)
Rate bets underpin that trade. Net interest income—the difference between what banks earn on loans and pay out on deposits—can shift rapidly as markets adjust expectations for policy rates.
Broader UK stocks slipped on Wednesday, with investors shifting their focus to U.S. tech shares while adopting a cautious stance ahead of upcoming policy announcements and earnings reports. “There seems to have been a rotation out of European and U.K. stocks in favour of U.S. technology stocks,” said Axel Rudolph, senior financial analyst at IG. (Reuters)
The U.S. Federal Reserve kept its benchmark interest rate steady overnight at 3.50%-3.75%. Fed Chair Jerome Powell noted the economy had “once again surprised us with its strength.” Meanwhile, Michael Pearce, chief U.S. economist at Oxford Economics, said he anticipates the Fed will maintain an “extended pause.” (Reuters)
HSBC and its peers face a slower march toward rate cuts, which helps lending margins hold up. But that also means funding costs stay elevated, prompting investors to pull back from bank stocks faster if growth numbers weaken.
Company news injected fresh movement. HSBC confirmed its privatisation of Hang Seng Bank took effect on Jan. 26, with the subsidiary’s shares pulled from the Hong Kong market on Jan. 27. Investors can expect cash payments by Feb. 4. “By bringing together our shared heritage, Hang Seng Bank’s local strength and HSBC’s global reach, we will help ideas travel further,” said group CEO Georges Elhedery. (HSBC)
In a separate filing, HSBC revealed it increased its voting stake in International Personal Finance to 7.152% from 6.130% following a recent purchase. (Investegate)
The rally has tightened the margin for error. Signs of slowing revenue growth, a jump in credit losses, or even a more conservative stance on expenses might trigger a sharper sell-off in the shares.
HSBC’s annual results on Feb. 25 will be the next key trigger, with investors eager for updated guidance on profitability and the bank’s outlook on interest rates. (HSBC)
