Surging bond yields push UK midcaps to biggest weekly drop in over a year

(Reuters) -British midcap stocks logged their biggest weekly decline in more than a year on Friday, as surging borrowing costs on the back of higher inflation expectations and concerns about Donald Trump's return to the White House hammered risk sentiment.

The FTSE 250 index , which is made up of companies that closely track the domestic economy, fell 1.4% to an eight-month low.

The index recorded a 2.8% weekly drop, its weakest performance since October 2023, hurt by a sharp rise in British borrowing costs that fuelled concerns about public finances following big spending plans announced by the government.

Investors were pinning this week's big moves in bond markets on markets bracing for inflationary policies once Trump returns to office in the U.S.

Further pushing yields higher on Friday, stronger-than-expected U.S. payrolls data prompted traders to scale back bets of rate cut from the Federal Reserve this year.

Yields on UK government bonds remained elevated, with the one on the 10-year gilt hovering near its highest level since 2008, while the 30-year stood at its highest level since 1998.

The exporter-heavy FTSE 100 dipped 0.9% but notched its third straight weekly advance, supported by a sharp drop in sterling through the week.

Oil and gas stocks were a bright spot, up 0.5%, crude prices rallied more than 4% to reach their highest levels since October as traders focussed on potential supply disruptions from more sanctions on Russia. [O/R]



Insurers dropped 2.3%, with those having a large exposure to the Los Angeles wildfires such Beazley and Hiscox (LON:HSX ) leading losses.

Alliance Pharma (LON:ALAPH ) jumped 38% after it agreed to be acquired by asset management firm DBAY Advisors in an all-cash deal valuing the healthcare group at 349.7 million pounds ($430 million).

Source: Investing.com

Останні публікації
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Аналіз ринку Як вплине завтра звіт NFP на курс долара США?