FX.co ★ FTSE 100 Falls as Bond Yields and Oil Prices Pressure Stocks

London’s FTSE 100 fell more than 1.5% to around 10,420 in the first trading session of the fourth quarter, hitting its lowest level since June as elevated bond yields continued to pressure equities. The decline came despite softer-than-expected US PCE inflation data, which tempered expectations of a Federal Reserve rate hike this month.

At the same time, rising oil prices—amid signs of increased Middle East energy flows and an ongoing deadlock in US–Iran negotiations—heightened inflation concerns and reinforced expectations that monetary policy may stay tighter for longer.

On the domestic front, UK house prices edged down 0.2% in September from the previous month, according to Nationwide. Annual price growth slowed to 0.8%, its weakest pace so far this year.