At the opening bell, the FTSE 100 dropped 56.86 points to 10,484.83. This downward movement was driven by a fresh spike in government bond yields and Brent crude climbing back past USD 100 a barrel. Specifically, Brent crude futures increased by 0.58% to reach USD 101.2 per barrel, whereas US West Texas Intermediate (WTI) slipped 0.47% to USD 89.86 per barrel.
Early Wednesday trading saw sterling drop against the US dollar to USD 1.3247, down from USD 1.3280 recorded during Tuesday’s London equities close. Meanwhile, the British currency held nearly steady against the euro at EUR 1.1793, compared to EUR 1.1791 previously.
Gainers & Losers
Leading the advance, Haleon rose 1.77% to 339.90p, JD Sports Fashion increased 1.57% to 81.60p, and Airtel Africa gained 1.55% to 315.40p. Additional winners included Reckitt Benckiser Group up 1.39% at 5,046p, Melrose Industries higher by 1.35% at 467.20p, and Smith & Nephew up 1.24% at 1,024p.
Conversely, Severn Trent led the decliners with a 2.70% drop to 3,030p, followed by Anglo American down 1.81% at 4,077p. Spirax Group retreated 1.29% to 7,265p, Diploma fell 1.21% to 7,765p, London Stock Exchange Group dropped 0.81% to 8,318p, and Lion Finance Group declined 0.75% to 13,220p.
Bond Yield Rise
As investors raised questions regarding the demand for American debt, the US 10-year yield climbed above Tuesday’s London close of 5.27%, while the 30-year yield hovered near 5.69%. According to ING strategists, ‘we doubt rates will calmly settle at current levels.’ Upcoming events on the calendar include the Federal Reserve’s September minutes, UK gilt tenders, and a $39 billion US 10-year debt auction.
House Prices Fall in London
Property values in London experienced a sharp decline last month, compounding the ongoing property market slowdown brought on by the Iran war.
Data from Lloyds’ house price index shows that the average property price in the capital declined by 2.2% to GBP 531,548 for the 12 months leading to September, worsening from the 1.5% drop seen in August. On a nationwide level, UK house prices remained flat both month-on-month and year-on-year for September, representing an improvement over the 0.3% price decline recorded the prior month.
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Global Market View
In the United States, the NASDAQ Composite rose 1.05% to touch an intraday peak of 27,544.07, ultimately setting a record closing high of 27,477.31. The Dow Jones Industrial Average gained 90.94 points, or 0.18%, to finish the session at 51,267.90, and the S&P 500 increased 0.66% to 7,773.95.
Across Asian markets, Tokyo’s Nikkei 225 dropped 0.92% to 70,035.71, while mainland China’s Shanghai Composite remained closed for the Golden Week holiday. Hong Kong’s Hang Seng index fell 0.63%, South Korea’s Kospi retreated 1.98%, and Indian benchmarks Nifty 50 and Sensex fell by 0.58% and 0.61%, respectively.
