FTSE 100 rallies on banking stocks rally after July rebound UK Market News: The UK stock market extended its winning run-on Monday, with blue-chip FTSE 100 index jumped by around half a percent, hitting its fresh seven-week highs as HSBC surged after providing an upbeat outlook. However easing inflation expectations raised doubts over the chances of biggest interest rate hike in 27 years from Bank of England (BoE) on Thursday. It also unveiled its strategy for unwinding some of the £895 billion of stimulus it delivered over the past decade. HSBC Holdings Plc ( LON: HSBA ): The share of financial services company, HSBC Holdings Plc jumped by around 8.5%, with a day’s high of GBX 557.20. The company announced a highest profitability target and bullish dividend outlook. The Europe’s biggest bank also pushed back on a proposal by top shareholder Ping, an insurance Group Co of China to split itself. Pearson Plc ( LON: PSON ): The share of education group, Pearson Plc jumped by around 10.5%, with a day’s high of GBX 845.00. The company reiterated its full-year profit outlook and said that its new integrated structure under boss Andy Bird was helping to save costs and grow the top line.