The FTSE 100 experienced a rebound on Wednesday, closing approximately 0.6% higher at 9,178. This followed a significant drop in the previous session, triggered by a global bond selloff that drove the UK’s 30-year bond yield to a multi-decade high. Market attention is also focused on the upcoming Budget announcement from Chancellor Rachel Reeves, amid speculation about potential tax increases and concerns regarding the UK’s fiscal situation. Positive domestic data revealed stronger-than-expected growth in the UK’s services sector.
- The FTSE 100 closed up about 0.6% at 9,178 on Wednesday.
- The index rebounded from its biggest daily decline since April.
- The previous decline was triggered by a global bond selloff.
- The UK’s 30-year bond yield reached its highest level since May 1998.
- Chancellor Rachel Reeves is preparing to deliver the Budget.
- A PMI survey showed activity in the UK’s services sector accelerated in August.
- Fresnillo and Endeavour saw strong gains due to rising gold prices.
- Antofagasta also performed well, driven by copper prices.
- Pearson was the biggest loser after Goldman Sachs trimmed its price target.
The index appears to be sensitive to macroeconomic factors, particularly movements in bond yields and fiscal policy announcements. Stronger than expected services sector data provided a positive impulse. Performance of individual companies within the index was diverse, with precious metals and copper miners benefiting from rising commodity prices, while other sectors faced challenges. The outlook for the asset remains subject to ongoing developments in both global bond markets and domestic economic conditions.