FTSE 100 Falls as Pound Weakens and Gilt Yields Hit 1998 Highs
British stocks fell on Tuesday as the pound slipped and bond yields surged to multi-decade highs. The FTSE 100 dropped 0.9%, while the pound fell 1.2% against the dollar to 1.3385, marking its weakest level in over three weeks. U.K. 30-year gilt yields climbed to their highest since 1998.
Across Europe, Germany’s DAX slid 2.2% and France’s CAC 40 lost 0.7%, reflecting broad market weakness.
Major Movers in London
Ithaca Energy (LON: ITH): Shares plunged more than 12% after major stakeholders Delek Group and Italy’s Eni sold stakes worth £106 million ($143 million), cutting their holdings in the oil and gas producer.
Oxford Nanopore (LON: ONT): The stock fell over 12% despite reporting narrower first-half losses and 28% revenue growth at constant currency. Investors were disappointed by the lack of an upgraded guidance.
Uniphar Group (IR: UPR): Posted strong interim results, with revenue up 8.6% year-on-year to €1.49 billion and adjusted EPS climbing 21% to 9.8 cent. Gross profit rose 6.3% to €219.7 million.
Centrica (LON: CNA): Confirmed that its Heysham 1 and Hartlepool nuclear plants in the U.K. have been granted a one-year extension, allowing operations until March 2028. Centrica holds 20% stakes in both, with EDF owning the remainder.
Johnson Service Group (LON: JSG): Shares surged 9.1% after announcing solid H1 results and a £25 million buyback. Operating profit rose 13.9% to £28.7 million, while revenue increased 5.5% to £257.5 million.
British American Tobacco (LON: BATS): Shares slipped 1.6% after RBC Capital downgraded the stock to “underperform,” citing structural weaknesses in its New Categories business and stronger competition from Philip Morris International.
Airlines Post Strong August Traffic
Low-cost carriers reported robust demand. Ryanair (LON: 0RYA) carried a record 21 million passengers in August, up 2% year-on-year, while maintaining a load factor of 96%.
Wizz Air (LON: WIZZ) saw passenger traffic climb 17% to 7.3 million, although its load factor slipped slightly to 94.8%. The airline remains on track to hit its Q2 target of 19.6 million passengers, requiring stronger September growth.
