Investing.com — British equities saw a decline on Monday, as part of a global selloff triggered by investors moving away from risky assets. This shift in investor behavior came on the heels of a U.S. jobs report last week, which indicated that the Federal Reserve might be hesitant to cut interest rates this year.
The , which consists of blue-chip stocks, dropped by 0.4% as of 1023 GMT. The , a midcap index that focuses on domestic stocks, also experienced a loss of 0.3%. Most subsectors saw a decrease in trading, with the aerospace and defense sectors being the most affected, experiencing a 1.8% decline.
Global stocks also saw a decrease, while bond yields remained high following the release of data on Friday. This data showed that U.S. job growth unexpectedly accelerated in December, and the unemployment rate fell to 4.1%.
The yield on the 30-year gilt reached a new 27-year high, and the yield on the 10-year note stood at its highest since 2008, extending the selloff into a second week.
Last week, British midcaps saw a nearly 3% drop, which was influenced by a sharp increase in British borrowing costs. This increase sparked concerns about public finances in the wake of large spending plans announced by the government.
The energy sector saw a 1.2% increase, diverging from the overall trend, as prices rose due to broader U.S. sanctions on Russian oil and anticipated effects on exports to key buyers India and China.
The higher crude oil prices had a negative impact on airline stocks, contributing to a 1.3% drop in the travel and leisure sector.
Later this week, inflation figures in the UK, Europe, and the United States will be closely watched. UK quarterly GDP estimates are also set to be released on Thursday.
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