FX.co ★ FTSE 100 Falls on Thursday

The FTSE 100 declined on Thursday as a sharp rise in oil prices and renewed selling in global bonds intensified worries about inflation and the outlook for interest rates. UK 10-year gilt yields hovered around 5.35%, close to the 19-year highs reached earlier this month. Brent crude advanced toward $108 a barrel after an adviser to Iran’s Supreme Leader warned that the conflict with the US could extend into the Indian Ocean in a later phase.

Energy shares were the standout performers: Shell gained 1.7% and BP rose 2.6%, buoyed by the move higher in crude prices. In contrast, bank stocks came under pressure, with HSBC down 0.8% and both Barclays and Lloyds Banking Group slipping about 0.5%. Defence names also retreated, as Rolls-Royce fell 1.4% and BAE Systems dropped 1.6%. Miners weakened, with Rio Tinto losing 1.7% and Glencore edging 0.6% lower.