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The FTSE 100 index rebounded modestly today after uncertain early session activity amid rising UK government bond yields. The index bounced back with the 30-year gilt yield jumping to a 27-year high of 5.749%.
After falling 79.65 points to 9,116.69 in yesterday’s session, the index is trading 31.81 points higher at 9,148.50. Analysts say that overall volatility in the global bond market, driven by investors' increasing demand for higher returns on sovereign debt, is affecting stocks.
Among notable FTSE movers, Ashtead Group rose 1.82% to £5,468 following a solid first-quarter update. Revenue climbed 2% to $2.8 billion (£2.1 billion), though adjusted earnings dipped slightly by 1%.
The construction equipment rental firm reiterated full-year guidance, citing structural growth in its sector, and announced ongoing share buybacks totaling $1.5 billion (£1.2 billion).
Luxury retailer Watches of Switzerland led the FTSE 250 with a remarkable 7% jump to £340.5. The company reassured investors that recent US tariffs on Swiss exports are unlikely to impact first-half performance, emphasizing strong trading in both the UK and US markets.
The success of its flagship Rolex boutique on Old Bond Street, London, also contributed to positive sentiment.
Fresnillo PLC (FRES) saw a notable 4.22% increase, rising £81 to £2,000. InterContinental Hotels Group (IHG) also performed well, gaining 2.29% with a £202 rise, bringing its price to £9,032.
Meanwhile, Antofagasta PLC (ANTO) increased by 2.02%, adding £43 to reach £2,174. These positive movements reflect investor confidence in these companies amid market fluctuations.
Conversely, insurers Prudential and M&G faced pressure despite solid results. Prudential fell 1.5% following its share repurchase announcement, while M&G dipped 1.2% after a slight profit uptick failed to meet market expectations.
In a significant development for the UK utilities sector, Thames Water’s main creditors proposed a £20.5 billion investment plan to overhaul the troubled water supplier.
The consortium, led by 15 investors including BlackRock and Elliott Management, aims to reduce sewage spills by at least 135 per year and replace 1,000km of water mains.
This plan, submitted to regulator Ofwat, is designed to prevent the firm from entering a temporary special administration regime.
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The FTSE 100’s mixed performance comes amid ongoing macroeconomic pressures. Yesterday, the index posted its largest one-day decline since April, with long-term gilt yields hitting levels not seen since 1998.
Analysts anticipate a steadier session ahead, with global market sentiment influenced by developments in government borrowing costs and macroeconomic trends. Meanwhile, gold keeps climbing, trading near record levels at $3,528 per ounce, reflecting caution amongst investors.
