Banks lead FTSE 100 lower as gilt yields, oil prices climb
EWU•The FTSE 100 fell 0.4% to 10,498.53 points and the FTSE 250 slipped 0.2% as banks declined, while oil prices and gilt yields rose.
1. UK shares decline
The FTSE 100 edged lower on Wednesday after three consecutive sessions of gains, with heavyweight banking stocks leading declines. HSBC, Standard Chartered and Barclays fell between 2% and 3%; British 10-year borrowing costs rose to their highest level since October 1.
2. Oil and company moves
Brent futures held above $100 a barrel as investors weighed higher Gulf exports against Middle East supply risks and a storm approaching US oil-producing regions. Shell rose 0.7% after expecting third-quarter refining margins of $42 a barrel, up from $24 in the previous quarter. Pennon fell 21% after launching a fully underwritten £550 million rights issue and cutting its dividend, while Avon Technologies gained 14% after saying annual results were expected to beat market expectations.
3. Other market factors
Investors awaited minutes from the Federal Reserve’s latest meeting for clues on US monetary policy and the timing of future rate cuts. HSBC reportedly plans deep job cuts in its UK wealth business as part of a broader, AI-driven efficiency push. British house prices were flat in September after their first annual decline since 2023 in August.
