FTSE 100 Slips As Yields Spike, Sterling Plunges

(RTTNews) - The FTSE 100 benchmark of the London Stock Exchange dropped close to a percent amidst renewed concerns about the fiscal situation in the U.K. The massive spike in bond yields as markets brace for the upcoming Autumn Budget as well as the sterling's tumble witnessed in the day's trading also contributed to the decline in the benchmark.

The FTSE 100 which had closed at 9,196.34 on Monday traded between 9,106.75 and 9,186.50 on Tuesday.

The index is currently trading at 9,119.09, having slipped 0.84 percent from the previous close.

In the 100-scrip index, only 12 scrips are trading in the overnight green zone. Fresnillo topped gains with a surge of 2.2 percent. Unilever followed with gains of 1.5 percent.

Marks and Spencer Group led losses with a decline of more than 5 percent. Entain slipped 4.5 percent whereas Land Securities Group dropped 4.1 percent.

Amidst the dollar's resurgence, the six-currency Dollar Index has surged 0.9 percent to 98.54 from the level of 97.68 at the previous close. The GBP/USD pair has in the meanwhile plunged 1.45 percent to 1.3346. The sterling ranged between $1.3550 and $1.3340 in the day's trade. The EUR/GBP pair is trading 0.69 percent higher at 0.8706. The GBP/JPY pair has slipped 0.38 percent to 198.60.

With markets globally worrying about the unsustainable fiscal situation in major economies, bonds in the U.K. also witnessed a jump in yields. Ten-year bond yields in the U.K. added 1.24 percent to 4.8170 percent. The yields ranged between 4.8350 percent and 4.7710 percent over the course of the day. The same was at 4.7580 percent a day earlier.