The FTSE 100 opened 56.86 points lower at 10,484.83 as government bond yields surge again and Brent moves back above USD 100 a barrel. Brent crude futures rose 0.58% to USD 101.2 per barrel. US West Texas Intermediate (WTI) declined 0.47% to USD 89.86 per barrel.
Sterling fell to USD 1.3247 early Wednesday from USD 1.3280 at the time of the London equities close on Tuesday. Against the euro, it was at EUR 1.1793, barely budging from EUR 1.1791.
On the upside, Haleon gained 1.77% to 339.90p, while JD Sports Fashion advanced 1.57% to 81.60p. Airtel Africa rose 1.55% to 315.40p, and Reckitt Benckiser Group climbed 1.39% to 5,046p. Melrose Industries added 1.35% to 467.20p, while Smith & Nephew gained 1.24% to 1,024p.
On the downside, Severn Trent fell 2.70% to 3,030p, while Anglo American declined 1.81% to 4,077p. Spirax Group dropped 1.29% to 7,265p, and Diploma slipped 1.21% to 7,765p. London Stock Exchange Group fell 0.81% to 8,318p, while Lion Finance Group declined 0.75% to 13,220p.
The US 10-year yield rose from 5.27% at Tuesday’s London close, and the 30-year was near 5.69%, with investors questioning demand for US debt. ING strategists said ‘we doubt rates will calmly settle at current levels.’ The Fed’s September minutes, UK gilt tenders and a $39 billion US 10-year auction are due.
House prices in London fell sharply last month, as homeowners continue to suffer from the property market slowdown caused by the Iran war.
The average house price in London fell by 2.2% to GBP 531,548 in the year to September, marking a worse drop than August’s 1.5%. Across the UK, house prices were unchanged in the month to September as well as year on year, marking an improvement from last month’s 0.3% drop in values, according to Lloyds’ house price index.
US market’s NASDAQ Composite was up 1.05% and hit an intraday of 27,544.07. The tech-heavy index posted a record close of 27,477.31. The Dow Jones Industrial Average advanced 90.94 points, or 0.18%, to end at 51,267.90. The S&P 500 climbed 0.66% to 7,773.95.
In Asia, Tokyo's Nikkei 225 fell 0.92% to 70,035.71, while China’s Shanghai Composite remained closed for Golden Week. Hong Kong’s Hang Seng fell 0.63%, and South Korea’s Kospi edged down by 1.98%. In India, both the Nifty 50 and the Sensex declined by 0.58% and 0.61%, respectively.
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