British shares climbed on Tuesday, scaling their highest levels in more than a year, as a rise in prices of most resources lifted energy and metal mining stocks, while lender HSBC gained following the sale of its Canadian unit.

The globally-focussed FTSE 100 was up 0.7% by 8:14 GMT on the first trading day of the second quarter, while the domestically-oriented FTSE 250 moved 0.5% higher.

Leading sectoral gains, precious metal miners climbed 3.8%, following a slight uptick in gold prices.

Industrial metal miners followed with a 2.6% rise, as concerns of tighter raw material supplies and improved demand prospects pushed copper prices higher, while oil and gas stocks advanced 2.3%, tracking higher crude prices.

“The UK equity market doesn’t need a rate cut to really raise… the focus should remain on growth and GDP and we don’t see any concern,” Manish Singh, Chief Investment Officer at Crossbridge Capital LLP said.

Data showing prices in British shops rose at the slowest pace in more than two years in March added to signs that the country’s inflation squeeze is now fading fast, boosting sentiment.

Meanwhile, British house prices rose in March at their fastest annual pace since December 2022, indicating a recovery in a market which has been squeezed by high interest rates.

Investors now look forward to UK business activity data for the month of March, due 0830 GMT.

UK’s FTSE 100 lacklustre at open as energy stocks fall

Among individual stocks, HSBC Holdings gained 1.7% on the prospects of recognising an estimated gain of $4.9 billion in the first quarter of 2024, as it completed the sale of its Canadian unit to Royal Bank of Canada.

The broader banks index was up 1.4%. Fashion chain Superdry dropped more than 51% to a record low of 13.80 pence as chief executive and top shareholder Julian Dunkerton will not be making an offer for the struggling company.