Lunchtime market roundup: FTSE 100 rises, oil stays above USD100

London stocks were mixed on Thursday as bond sell-offs continued globally, with the US 30-year yield reaching a record high, amid fears over intensifying inflation and tightening monetary policy.

The FTSE 100 index was up 6.36 points, 0.1%, at 10,711.62. The FTSE 250 was down 110.41 points, 0.5%, at 24,252.80, and the AIM all-share was down 4.93 points, 0.6%, at 788.51.

The Cboe UK 100 was marginally higher at 1,065.53, the Cboe UK 250 was down 0.4% at 21,067.15, and the Cboe small companies was down 0.2% at 18,734.75.

In European equities on Thursday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.3%.

A global bond sell-off intensified as investors fretted over inflation and signs that the US economy may be running too hot.

Government borrowing costs had jumped on Wednesday after a stronger-than-expected S&P Global survey showed US business activity expanding at its fastest pace in five years, alongside a sharp rise in costs.

The data prompted investors to reassess the path for US interest rates amid concerns that persistent inflationary pressure could lead the Federal Reserve to tighten monetary policy further.

The yield on the US 10-year Treasury was quoted at 5.13% at midday on Thursday, widening from 5.08% late Wednesday. The yield on the US 30-year Treasury was quoted at 5.43%, widening from 5.38%.

The 30-year yield touched 5.444% during Thursday's session, its highest level since 2004.

UK government borrowing costs also continued to climb, with yields on both 10-year and 30-year gilts rising around 5 basis points and moving back towards multi-year highs reached earlier this month.

Meanwhile, the UK Treasury is considering accepting a smaller fiscal buffer at next month's budget in an effort to limit tax rises and spending cuts, the Financial Times reported.

The newspaper said the Treasury and Number 10 are discussing whether Chancellor John Healey could target less headroom against the government's fiscal rules than the £23.6 billion forecast by the Office for Budget Responsibility in March.

Gilt investors surveyed by the FT suggested the buffer could fall to around £14 billion without triggering a significant market sell-off, although some argued that headroom below £20 billion could undermine confidence.

The pound was quoted at USD1.3226 at midday on Thursday, lower than USD1.3254 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1627 from EUR1.1636 a day prior.

The euro traded at USD1.1370 at midday on Thursday, lower than USD1.1391 late Wednesday. Against the yen, the dollar was quoted at JPY158.77 versus JPY158.39.

On the FTSE 100, St James's Place and Standard Life fell 3.7%, with Standard Life shares trading ex-dividend.

At the top of the blue-chip index, JD Sports Fashion rose 3.1%.

On the FTSE 250, Raspberry Pi Holdings climbed 5.5% after saying it expects full-year earnings to be ahead of market expectations.

Harbour Energy rose 2.7%, while Mitchells & Butlers gained 2.0% after reporting a return to sales growth.

At the bottom of the index, Victrex fell 6.8% as it targeted mid-single-digit percentage organic revenue compound annual growth over the medium term.

Ceres Power Holdings lost 6.7% after Goldman Sachs cut its price target to 915p.

Vistry Group fell 5.8% after cutting guidance as Chief Executive Adam Daniels outlined plans to create a smaller and more focused business.

CVS Group dropped 5.6% after reporting a fall in pretax profit amid regulatory costs, while Rightmove lost 4.1% as its shares traded ex-dividend.

Among smaller caps, Quantum Data Energy's stock price more than tripled after trading in its shares resumed on the London Stock Exchange, following the lifting of a temporary suspension by the Financial Conduct Authority on Thursday morning.

The suspension followed delays to the publication of its annual accounts after former auditor Crowe UK unexpectedly resigned in April. Quantum disputed the reasons Crowe gave for its resignation and subsequently appointed a new auditor to complete the audit.

After publishing its audited annual accounts, the company applied to restore its listing and trading in its shares.

BSF Enterprise fell 11%, reversing some of Wednesday's gains after the company secured a key US patent for its Etsyl technology.

Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.5%, the S&P 500 down 0.6% and the Nasdaq Composite down 1.1%.

Brent oil was quoted at USD104.41 a barrel at midday on Thursday, higher than USD102.74 late Wednesday.

Oil prices remained firmly in focus as Brent held above USD100 a barrel, having briefly dipped below that level on Monday, Tuesday and Wednesday.

Gold was quoted at USD4,283.45 an ounce at midday Thursday, marginally lower than USD4,283.94 on Wednesday.

Meanwhile, Chinese President Xi Jinping arrived in the US late Wednesday for a high-stakes summit with US President Donald Trump.

The two countries have agreed to extend their trade-war truce, which had been due to expire in November, until at least January 10.

In a written statement reported by Chinese state media following his arrival, Xi said China and the US should be "partners rather than rivals".

Trump is due to host Xi at the White House on Thursday, with senior US technology and artificial intelligence executives also expected to attend a state dinner with the two leaders.

Still to come on Thursday's economic calendar are US weekly jobless claims and new home sales.

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