FTSE 100 Falls as Bond Yields and Oil Prices Rise

London’s FTSE 100 extended yesterday’s losses, falling 0.3% to 10,760 points on Wednesday and reaching its lowest level in two weeks. The global bond selloff extended for another day, while oil prices continued to climb amid escalating fighting in the Middle East. UK government bonds were among the hardest hit, with 30-year yields hitting their highest since 1998 and 10-year yields their highest since 2008. Higher borrowing costs, combined with persistent inflationary pressures, are expected to significantly reduce the Chancellor’s fiscal headroom and make it more challenging to remain within the government’s self-imposed borrowing rules. Oil majors Shell and BP gained around 0.3%, while BP named Ian Tyler as its new chair following the surprise departure of Albert Manifold earlier this year. Meanwhile, Ryanair cut its full-year 2027 traffic outlook and warned that European short-haul fares could rise “materially” if high oil prices persist.





