London stocks slide as markets stay wary of global rate outlook
(Reuters) - British equities slipped on Monday, caught up in a global selloff as investors shied away from risky assets following a U.S. jobs report last week reinforced bets that the Federal Reserve would be cautious about cutting interest rates this year.
The blue-chip FTSE 100 shed 0.4% as of 1023 GMT, while the domestically-focussed FTSE 250 midcap index lost 0.3%.
Most subsectors traded lower, with aerospace and defence the worst hit, down 1.8%.
Global stocks fell, while bond yields remained elevated after data on Friday showed U.S. job growth unexpectedly accelerated in December while the unemployment rate fell to 4.1%.
The yield on the 30-year gilt jumped to a fresh 27-year high, while the yield on the 10-year note stood at its highest since 2008, extending the selloff into a second week.
British midcaps suffered a near 3% drop last week, hurt by a sharp rise in British borrowing costs that fuelled concerns about public finances following big spending plans announced by the government.
Energy was an outlier, up 1.2% as crude oil prices gained on wider U.S. sanctions on Russian oil and the expected effects on exports to top buyers India and China. [O/R]
The elevated crude oil prices weighed on airline stocks, with the travel and leisure sector down 1.3%.
Later this week, inflation figures will be in focus in the UK, along with most of Europe and the United States. UK quarterly GDP estimates will also be released on Thursday.
Among headlining stocks, Entain rose 1.4% after the gambling group said it expects 2024 core profit to be at the top end of its forecast range.
Biotech firm Oxford Nanopore Technologies jumped 14.4% after forecasting full -year revenue of about 183 million pounds ($222.27 million) vs. 169.7 million a year prior.
PageGroup dipped 3.9% after the recruiter issued its second profit warning in six months.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Tasim Zahid)
