FTSE 100 registers monthly decline as oil rally heightens inflation concerns
EWU•The FTSE 100 fell 0.29% to 10,606 points on Wednesday, recording its biggest monthly loss since March while extending its quarterly gains to seven consecutive quarters. Brent crude rose above $103 a barrel, while the FTSE 250 gained 0.68% on the day but fell for the month.
1. Indexes and inflation concerns
The FTSE 100 closed 0.29% lower at 10,606 points, as inflation concerns and rising bond yields weighed on investor sentiment. Brent crude rose above $103 a barrel, and the yield on the British 10-year gilt hovered near a two-decade high. Traders were pricing in at least one 25-basis-point Bank of England rate hike this year.
2. Sector and stock moves
Banks and pharmaceutical stocks were the biggest drags on the blue-chip index, falling 0.7% and 1%, respectively. Utilities rose 1.7%. Greggs advanced 8.2% after raising its annual profit outlook, while Saga surged 22.8% after forecasting materially higher annual profit. Britain's economy grew 0.5% in the second quarter, more quickly than previously estimated.
