MILAN, July 12 (Reuters) - A gauge of British banking stocks surged on Wednesday after the Bank of England said its annual stress test of eight major lenders showed each could cope with rising interest rates in a stressed environment.
The FTSE 350 Bank index was up 1.2% by 0722 GMT, set for its biggest one-day rise in six weeks and outperforming broader UK market and its peers in the eurozone.
Shares in HSBC were up 0.5%, while those in Barclays rose 1.8% and Lloyds gained 2.4%. (Reporting by Danilo Masoni; Editing by Amanda Cooper)