UK equities are trading higher on Tuesday after Spanish borrowing costs dropped amid rising hopes that the country sill soon apply for a new bailout. Yields on Spain's 10-year bonds lost 15 bsp to 5.73%. Lifting the UK shares further, the country's construction PMI added 0.5 points to 49.5 last month. A reading below 50 indicates contraction. The FTSE 100 Index gained 0.31% and is currently trading at 5,838.29. Six out of ten sectors within the index advanced. The best-performers were consumer services and industrials. InterContinental Hotels Group and Whitbread rose 0.61% and 0.52% while Meggit added 0.70%. Sending the UK index lower, lenders shed 0.22%. Lloyds Banking Group and Royal Bank of Scotland Group slumped 2.03% and 2.52% after UBS cut its recommendation on both banks from ‘buy' to ‘hold', citing that landers may need to raise more capital.