FTSE 100 Live: Fall expected as bonds exert pressure
The FTSE 100 is set to open lower on Wednesday as rising bond yields and tensions in the Middle East continue to put pressure on global equity markets.
Futures point to a 25-point fall for London’s blue-chip index at the open, a day after it edged 7.74 points higher to close at 10,728.04.
Wall Street ended in the red overnight, led by a sell-off in technology and semiconductor stocks. The Nasdaq Composite dropped 1.3%, while the S&P 500 fell 0.7% and the Dow Jones slipped 0.2%.
Asian markets have followed Wall Street lower this morning, with Japan’s Nikkei 225 down 3.2%, South Korea’s Kospi tumbling 5.6% and Shanghai falling 2.3%, although Hong Kong’s Hang Seng was broadly flat.
The pressure comes as ongoing geopolitical rumbles in the Middle East push oil prices and government bond yields higher, keeping concerns about inflation at the forefront.
The US 10-year Treasury yield reached its highest level since January 2025 on Tuesday, while Germany’s 10-year Bund yield climbed to its highest since 2011.
This all means that “the downside correction in equities will likely deepen,” says Ipek Ozkardeskaya, market analyst at Swissquote.
She highlights that technology companies are expected to find higher borrowing costs particularly uncomfortable after heavy spending on AI infrastructure.
Ozkardeskaya said: “Something must give: either yields will come lower – if Middle East tensions ease, for example – or stock valuations will readjust.”
Source link
