FTSE 100 registers monthly decline as oil rally heightens inflation concerns
FTSE 100 registers monthly decline as oil rally heightens inflation concerns Updates to markets close
Sept 30 (Reuters) - London's FTSE 100 fell on Wednesday and posted a monthly loss as persistent inflation concerns and rising bond yields dampened investor sentiment.
The blue-chip FTSE 100 index .FTSE closed 0.29% lower at 10,606 points, registering its biggest monthly loss since March, though notching a seventh consecutive quarterly gain.
The midcap FTSE 250 .FTMC climbed 0.68% but dipped for the month.
Oil prices rose with Brent crude LCOc1 above $103 a barrel, reinforcing inflation concerns and boosting expectations that interest rates could remain higher for a longer period
Heavyweight banks .FTNMX301010 and pharma stocks .FTNMX502010 were the biggest drags in the blue-chip index, declining 0.7% and 1% respectively
Telecom stocks .FTNMX151020 also dropped, with Airtel Africa AAF.L shedding 3.3%
Global bonds inched higher, with the yield on the British benchmark 10-year gilt GB10YT=RR hovering near two-decade highs
Reflecting rate tightening across central banks globally, traders are pricing in at least one 25-basis-point rate hike by the Bank of England this year, according to data compiled by LSEG
BoE policymaker Alan Taylor said it was unclear that it would be practical for the BoE to do a single rate hike to tame inflation without fuelling unwarranted market speculation of further increases
Limiting losses, the utilities sector .FTUB6510 rose 1.7% a day after British PM Andy Burnham made a series of policy announcements for the sector
On the data front, Britain's economy grew more quickly than previously thought in the second quarter, with output expanding by 0.5% in the April-to-June period, the Office for National Statistics said
Among other stocks, Greggs GRG.L advanced 8.2% after the fast-food chain raised its annual profit outlook as underlying sales growth accelerated in the third quarter
Holiday and insurance group Saga SAGA.L surged 22.8% to a near seven-year high after forecasting materially higher annual profit
(Reporting by Anand Gopal in Bengaluru; Editing by Mrigank Dhaniwala and Alex Richardson)