On Monday, UK stocks are displaying weakness, mirroring trends in major European markets. The dip is attributed to rising bond yields and ongoing uncertainties surrounding global economic conditions and interest rate projections, which are affecting market sentiment.
The FTSE 100 index has declined by 26.91 points, or 0.33%, reaching 8,221.58 after an initial drop to 8,207.67.
Among the losers, shares of Pearson, International Airlines Group (IAG), DS Smith, Rolls-Royce Holdings, EasyJet, and M&G have decreased by 2% to 3.4%.
Additionally, companies like Fresnillo, Relx, Melrose Industries, Diageo, Diploma, Scottish Mortgage Investment Trust, 3i Group, Hikma Pharmaceuticals, Informa, and Games Workshop have seen declines ranging from 1.4% to 1.9%.
Conversely, Rentokil Initial is up by 2.7%. Entain is also on the rise, climbing 2% following a strong earnings forecast. Meanwhile, shares in Glencore, Shell, Centrica, Intermediate Capital Group, BP, and Bunzl have gained between 1% and 1.4%.
The yield on the UK 10-year government bond has reached its highest mark in over 16 years, rising to 4.9%. This increase reflects diminishing expectations of significant interest rate cuts by the Bank of England this year, fueled by ongoing inflation concerns and economic uncertainty.
The material has been provided by InstaForex Company -
www.instaforex.com
