Banks lead FTSE 100 decline as bond yields, oil surge
EWU•The FTSE 100 fell 0.8% to 10,458.5 points as heavyweight banks led declines, while bond yields and oil prices surged.
1. Banks weigh on index
The FTSE 100 fell 0.8% on Wednesday after three consecutive sessions of gains, while the FTSE 250 slipped 0.7% to a three-week low. HSBC, Standard Chartered and Barclays fell between 3.4% and 4.5%.
2. Yields and oil rise
British 30-year bond yields hit a 28-year high as a global bond selloff pushed US 30-year yields to their highest since 2002. Brent crude held around $101 a barrel as investors weighed higher Gulf exports against persistent Middle East supply risks and a storm approaching US oil-producing regions.
3. Company and economic news
Shell said it expects third-quarter refining margins to reach a record $42 a barrel, up from $24 in the previous quarter; its shares ended flat. Pennon Group fell 20% after launching a fully underwritten £550 million rights issue and cutting its dividend. British house prices were flat in September, while sterling reached a 16-month high against the euro.
