FTSE 100 slides as HSBC's results, inflation fears dent sentiment

May 5 (Reuters) - The UK's ​FTSE 100 ⁠slid more than 1% on Tuesday, ​as traders returned from a bank holiday to witness a rout in financial stocks driven ​by ‌HSBC's surprise loss and concerns about the U.S.-Iran conflict.

The blue-chip FTSE 100 dropped 1.4% ⁠to 10,219.1 points at the close, clocking its biggest ⁠one-day drop since late March. The ​midcap FTSE 250 shed 0.4%.

* HSBC's shares fell 5.9% after the British bank reported an unexpected $400 million loss linked to a fraud case, raising further questions about ​lenders' ‌private credit exposure.

* The overall bank index dropped 4.6% to a near one-month low.

* The broader market was also responding to growing tensions in the Middle East, with the United Arab Emirates saying it was under attack from Iranian ​missiles and drones, even as Washington said a shaky ceasefire was intact despite ‌an exchange of fire the previous day.

* Brent crude futures retreated, but held near $110 a barrel, stoking concerns that elevated ‌energy prices would fuel inflation and force major central banks to maintain a tighter monetary policy.

* Traders are pricing in two or possibly three interest rate hikes ​by the Bank of England by the end of 2026.

* Travel-related stocks fell on concerns ‌about higher fuel costs. Cruise operator Carnival and British Airways operator IAG dropped 3.7% and 1.6%, respectively.

* Britain's Intertek jumped almost 6% after the company said it was ⁠reviewing ⁠a revised takeover bid from Swedish private equity group ‌EQT AB.

* Britain's largest broadband and mobile provider, BT Group , climbed 1.7% after BofA Global Research ​upgraded the stock ​to "buy", citing the potential for a higher dividend payout.

* Vodafone dipped ‌2.2% after the telecoms company agreed to buy its partner CK Hutchison's stake in VodafoneThree for 4.3 billion pounds ($5.8 billion). (Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli and Alison Williams)

HSBC Holdings

International Airlines

Intertek Group

BT

Vodafone