The UK’s FTSE 100 index hovered near flat on Tuesday, as gains in major banking stocks were largely offset by weakness in consumer staples and mining shares.

Lending-sector strength came after the Bank of England — for the first time since the global financial crisis — moved to ease certain capital requirements for banks that cleared its 2025 stress tests.

Shares in heavyweight banks such as Lloyds Banking Group, HSBC Holdings and Barclays lifted the broader financial-services cohort, with gains ranging from just under one per cent to nearly two per cent.

However, indices for consumer-staples firms — including food, beverage and tobacco groups — slipped as investor sentiment remained cautious, while miners suffered on softening metals and commodity prices.

Precious and industrial-metal producers both slipped, narrowing the margin of gains from financials and limiting overall upward momentum.

The market reaction reflects a tension between improved financial-sector prospects and more uncertain demand for commodities and consumer goods amid ongoing global economic pressures.

Despite the mixed performance, some lenders are now seen as better positioned to support credit growth and withstand potential economic stress.

At the same time, resource and consumer-facing companies face headwinds from softer global demand and cost pressures.

With the Bank of England’s regulatory relaxation offering banks breathing space, and sectors such as mining and staples under pressure, the FTSE 100 appears caught between competing forces — a cautious optimism in parts of the market and persistent uncertainty elsewhere.

Investors now await fresh economic data and central-bank cues that could tip sentiment firmly in either direction.