UK stocks extend winning run, HSBC jumps after results

(Reuters) - UK's top share index extended its winning streak on Monday as HSBC surged after providing an upbeat earnings outlook, while easing inflation expectations dampened hopes of a super-sized rate hike from the Bank of England (BoE) this week.

The blue-chip FTSE 100 climbed 1.1% by 0721 GMT after hitting seven-week highs on Friday.

HSBC jumped 5.9% after Europe's biggest bank announced a higher profitability target and bullish dividend outlook and pushed back on a proposal by top shareholder Ping An Insurance Group Co of China to split itself.

The wider banking index added 1.5%.

Pearson rose 5.6% as the education group reiterated its full-year profit outlook and said its new integrated structure under boss Andy Bird was helping to save costs and grow the top line.

The domestically focused midcap index gained 1.6% after notching a seven-week top last week.

Quilter jumped 13.8% after a media report said NatWest Group is considering a bid for the fund manager.

The British public's expectations for inflation fell again in July, a survey showed, potentially adding to the case for the BoE to increase interest rates by only a quarter percentage point later this week.

(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)