FTSE 100 falls as banks tumble, gilt yields near 20-year high
The FTSE 100 fell 0.4% to 10,498.53 as heavyweight banks tumbled, gilt yields climbed to their highest since October 1, and Brent held above $100 a barrel.
London’s blue-chip index snapped three sessions of gains on Wednesday, dragged lower by heavyweight bank stocks as rising oil prices and climbing bond yields kept investors cautious, according to Reuters.
The FTSE 100 fell 0.4% to 10,498.53 points by 0948 GMT, while the midcap FTSE 250 slipped 0.2%. HSBC, Standard Chartered and Barclays fell between 2% and 3%.
HSBC was in focus after the Financial Times reported the lender plans deep job cuts across its UK wealth management business, including cuts to financial advisers and specialist staff, as part of a broader push to use artificial intelligence. Reuters said it could not verify the FT report.
Brent futures held above $100 a barrel as investors weighed higher Gulf exports against Middle East supply risks and a storm approaching US oil regions. Shell rose 0.7% after saying third-quarter refining margins would jump to a record $42 a barrel, up from $24 in the second quarter.
British 10-year borrowing costs climbed to their highest since the near 20-year high touched on October 1. Pennon tumbled 21% after launching a fully underwritten £550 million rights issue and cutting its dividend, while Avon Technologies jumped 14% on an upgraded results outlook. Lloyds data showed British house prices flat in September after a first annual decline since 2023 in August. Investors awaited minutes from the Federal Reserve’s latest meeting for clues on future rate cuts.
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