British Shares Extend Decline

The FTSE 100 closed slightly lower at 10,441 on Thursday, holding the sharp decline from the previous session amid further pressure from the financial sector. Gilt yields surged to multi-decade highs in the longer end of the curve as higher energy prices exacerbated inflationary risks from fuel and power prices. Banks remained burdened by higher lending costs, with HSB, Lloyds, Barclays, NatWest, and Standard Chartered losing around 2%. Pharmaceutical giants also underwent pressure in the session with GSK sinking 3.1% and AstraZeneca losing 2.3%. On the other hand, Tesco gained 5.2% after first-half adjusted operating profit rose 6.3% to £1.78 billion, prompting the supermarket to raise its full-year guidance and increase its share buyback to £950 million.

The FTSE 100 Index fell 16 points or 0.15 percent on Thursday to close at 10443 points. Leading the losses are Standard Life (-4.50%), Lion Finance Group (-2.88%) and Vodafone (-2.86%). Top gainers were Tesco (5.46%), Imperial Brands (4.76%) and BP (3.79%).

The FTSE 100 fell to around 10,400 points on Thursday, its lowest level since June 19, as rising oil prices and renewed pressure in global bond markets weighed on sentiment. Investors also digested Federal Reserve minutes indicating that most policymakers expected another interest-rate increase this year. Brent crude reached a two-week high amid concerns over escalating Middle East tensions and potential supply disruptions, adding to inflation worries. Among individual stocks, Tesco surged more than 3% after first-half adjusted operating profit rose 6.3% to £1.78 billion, prompting the supermarket to raise its full-year guidance and increase its share buyback to £950 million. Imperial Brands gained 3% after announcing a £1.5 billion buyback, while Vodafone fell 1% after raising its annual VodafoneThree cost-saving target to £1 billion by 2032. UK housing sentiment also weakened, with the RICS house-price balance falling to -32% in September from -28% in August.