UK shares fall as higher bond yields weigh

© Reuters. FILE PHOTO: A broker looks at financial information on computer screens on the IG Index trading floor

(Reuters) – London’s FTSE 100 fell on Friday, as a persistent rise in bond yields globally led to fears of higher inflation and borrowing costs, while energy stocks rose on higher prices.

The blue-chip fell 0.7%, with banking and mining stocks, including Prudential (LON:) Plc, Lloyds (LON:) banking, Rio Tinto (LON:), Anglo American (LON:), and BHP, leading declines.

Oil heavyweights BP (LON:) and Royal Dutch Shell (LON:), however, gained 0.7% and 0.4%, respectively, as oil prices climbed after OPEC and its allies agreed to extend output cuts to April.

A weaker overnight finish on Wall Street following a jump in U.S. Treasury yields also spilled over to Asian equities earlier in the day.

The UK domestically focused mid-cap fell 0.7%, dragged down by consumer discretionary and financial stocks.

Equipment rental company Aggreko (LON:) rose 1.2%, as it backed a 2.32 billion pound ($3.22 billion) buyout offer from private equity firms TDR Capital LLP and I Squared Capital.

London Stock Exchange Group (LON:) fell 4.4%, even after announcing a 7% dividend increase as integration of its $27 billion acquisition of data and analytics company Refinitiv stepped up a gear.

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