*
Next slumps on reiterating annual profit decline
*
Banks surge as fears of a banking crisis ease
*
FTSE 100 gains 1.1%, FTSE 250 adds 1.3%
(Updates to market close, adds fresh comments)
By Johann M Cherian and Shashwat Chauhan
March 29 (Reuters) - London stocks jumped 1% on
Wednesday, as abating fears of a global banking meltdown lifted
financial stocks, while real estate stocks bounced back after
falling for the last three days.
The blue-chip FTSE 100 gained 1.1% on close, rising
for the third straight session.
Market jitters around a global financial meltdown appeared
to ease after a U.S. regional bank scooped up assets of failed
Silicon Valley Bank (SVB) earlier this week.
"Banking worries around the world are easing and the UK is
no exception," said Steve Sosnick, chief strategist at
Interactive Brokers.
"It's not as though someone rang a bell and gave an all-
clear, but I do think people are starting to feel a bit more
comfortable about the banking sector worldwide."
UK banks jumped 2.2%, their best single-day
performance in more than a week as lenders Barclays and
HSBC rose 3.5% and 2.4% respectively.
The domestically focussed FTSE 250 also added 1.3%,
with Bellway surging 7.2% after UBS raised its price
target on the homebuilder.
The broader home construction sector surged
3.3%.
Meanwhile, Bank of England data showed the volume of
mortgages approved by British lenders picked up in February by
more than expected, adding to signs that the downturn in the
housing market may be levelling off.
British real estate stocks rose 2.4%, posting
their best one-day performance in two months.
A recent rally in banks stocks coupled with rising commodity
prices boosting commodity-linked stocks has brought London's
FTSE 100 back to levels seen at the start of the year.
On the downside however, Next slumped 4.3% after the fashion retailer said that higher costs for wages and energy were still expected to reduce its profit this year, even as it reported higher annual profit. The Bank of England told regulators to move fast to toughen rules for funds used by Britain's pension industry which nearly collapsed last year after former Prime Minister Liz's Truss's "mini-budget". (Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Subhranshu Sahu, Rashmi Aich and Alex Richardson)
UK hot stocks: and Wall Street: Gilts report: Euro bond report Pan European stock report: Tokyo stocks: HK stocks: Sterling report: Dollar report:
* For company prices, click on -
* Company directory: By sector:
* For pan-European market data, click on -
* European Equities speed guide................ FTSE Eurotop 300 index........................... DJ STOXX index................................... Top 10 STOXX sectors........................ Top 10 EUROSTOXX sectors................... Top 10 Eurotop 300 sectors.................. Top 25 European pct gainers.................... Top 25 European pct losers..................... ))
