FTSE 100 slips as bond yields hit multi-decade highs, energy shares soar
EWU•The FTSE 100 fell 0.2% and the FTSE 250 lost 0.4% as UK gilt yields reached multi-decade highs, while energy shares climbed 3.7% and Brent crude rose 4.5% to above $104 a barrel.
1. UK stocks fall
London stocks slipped on Thursday as surging oil prices and a global bond selloff revived inflation worries. The FTSE 100 closed 0.2% lower after touching its lowest level in more than three months, while the FTSE 250 fell 0.4%.
2. Yields and energy rise
The 10-year gilt yield touched a 19-year high of 5.527%, while 20-year and 30-year yields each surpassed 6%. Brent crude rose 4.5% to above $104 a barrel amid shipping attacks in the Gulf and Strait of Hormuz and disrupted US offshore production. Energy stocks gained 3.7% to a record high, with BP up 4% and Shell up 3.6%.
3. Company moves
Banks fell 1.8%, and healthcare stocks dropped 2.2%. Tesco rose 5.2% after raising its fiscal 2026/27 profit forecast to £3.15 billion to £3.3 billion. Imperial Brands gained 5.1% after saying it was on track to meet full-year guidance and launching a £1.5 billion share buyback.
