Housing firms among fallers as FTSE slips in face of higher bond yields
The FTSE 100 moved 0.37%, or 27.31 points, lower to finish at 7,374.83.
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Your support makes all the difference.London’s markets dropped as sentiment was knocked by another rise in UK and US bond yields, with the FTSE 100 closing at its lowest level for almost two months.
Housing stocks were among the day’s notable fallers as Vistry Group became the latest listed developer to warn over profits due to the challenging market, weighing on investment in the sector.
The FTSE 100 moved 0.37%, or 27.31 points, lower to finish at 7,374.83.
Elsewhere in Europe, Germany’s Dax index slid to a new six-month low after Volkswagen shares dropped as it said profits were likely to be impacted by higher costs due to volatility in commodity prices.
The Dax index was 0.02% lower for the day and the Cac 40 closed up 0.51%.
Michael Hewson, chief market analyst at CMC Markets UK, said: “At one point it looked as if markets in Europe were going to open higher in the wake of the start of aid convoys into Gaza over the weekend, however a combination of rising yields, and concerns over the prospects for global growth saw markets initially slide into the red.
“Sentiment has stabilised a touch in the afternoon session as yields retreated from their intraday highs, and while the Dax and FTSE 100 have struggled, the CAC 40 edged into positive territory, making it very mixed session for European stocks.”
In the US, the main markets opened a touch lower as they were impacted by higher yields and increased worries about tensions in the Middle East.
Meanwhile, sterling had a positive session in the face of a weak dollar.
The pound was up O.58% at 1.223 US dollars and was 0.09% higher at 1.148 euros at market close in London.
In company news, Vistry stumbled following its warning over weaker demand in the housing market, as it also confirmed plans to shed around 200 jobs from the merger of two divisions.
It closed 42p lower at 683p as it also revealed that its net debt is set to be higher this year.
Keller Group shares lifted sharply after it hiked its full-year earnings outlook on the back of a strong showing for its North American business.
However, the ground engineering firm revealed it would have to take “corrective actions” across the UK and Europe due to a hit to profits from more challenging conditions and competitive pricing in the region.
Shares in Keller nevertheless closed up 111p at 784p.
Drugmaker Indivior made gains during the session as investors welcomed a settlement payment following antitrust litigation for its opioid-addiction treatment Suboxone.
Shares rose 78p to 1,587p after it said it would be pay 385 million dollars (£314.9 million) in relation to the settlement and confirmed it would see higher revenues over the latest quarter.
The price of oil dipped as the threat of an imminent Israeli ground invasion pushed back to allow time to secure further hostage releases.
A barrel of Brent crude fell by 0.6% to 91.61 US dollars (£74.93) as markets were closing in London.
The biggest risers on the FTSE 100 were Flutter Entertainment, up 505p to 12,955p, Ocado, up 18.7p to 505.4p, IAG, up 3.9p to 141.9p, Informa, up 15.8p to 701.6p, and Rolls-Royce, up 4.55p to 203.5p.
The biggest fallers on the FTSE 100 were Fresnillo, down 25.8p to 525.8p, AstraZeneca, down 330p to 10,100p, BT, down 3.25p to 110.7p, BP, down 13.2p to 532.2p, and Endeavour Mining, down 42p to 1,718p.