FTSE 100 Slides On Oil, Bond Yields; Banks Lead Losses

(RTTNews) - The U.K. stock market's benchmark index FTSE 100 slipped into negative territory Wednesday morning, weighed down by higher oil prices and bond yields. Bank stocks were among the major losers.

Investors looked ahead to the minutes from the Federal Reserve's most recent policy meeting. The minutes, due later in the day, could provide some clues about the U.S. central bank's interest rate trajectory.

Oil prices climbed higher on fears Iran is stepping up attacks on tankers in the Strait of Hormuz. U.K. Maritime Trade Operations said there had been nine attacks so far this month, half the number it reported for all of September in the waterway and Persian Gulf combined.

In a statement on the social media platform X, Yemen's Houthi group claimed that it carried out a series of drone and ballistic missile attacks targeting airports and military installations in Saudi Arabia.

Brent crude front-month futures were up 1.2% at $101.80 a barrel a little while ago. The yield on UK's 10-year bond rose to 5.475%.

The FTSE 100 was down 82.49 points or 0.79% at 10,459.20 a few minutes before noon.

Standard Chartered and HSBC Holdings shed 3.6% and 3.2%, respectively. Barclays drifted down 2.2%, Lloyds Banking Group lost nearly 2% and Natwest Group declined 1.9%.

Severn Trent eased by about 3%. Informa, Prudential, Investec, Antofagasta, Weir, IG Group Holdings, United Utilities Group, Halma, Lion Finance, Whitbread, Aviva, Burberry Group and National Grid also declined sharply.

Pennon Group shares plummeted 17%. The water utility company announced a £550 million rights issue and a 30 percent cut in its dividend.

JD Sports Fashion moved up 3.2%. Marks & Spencer, Reckitt Benckiser, Haleon, Sainsbury (J), BT Group and Compass Group gained 1.5%-2%.

Shell gained nearly 1% after raising its third-quarter integrated gas production outlook. British American Tobacco moved higher after the company entered into a new agreement with Merrill Lynch International to conduct its share repurchase program from Oct. 13

Vodafone Group, AutoTrader Group, Experian, Computacenter, BP, Airtel Africa, Smith & Nephew, Shell, Tesco, Howden Joinery Group and Tritax Big Box REIT also moved higher.

In economic news, monthly data published by Lloyds Banking Group showed UK house prices remained unchanged in September after falling for two straight months amid higher interest rate expectations.

House prices were flat in September on a monthly basis, following a 0.3% all in August and a 0.1% drop in July.

Prices were also unchanged annually in September compared to a decline of 0.4%in the preceding period.

Lloyds Mortgages Director Andrew Asaam said property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of Base Rate.