British equities took a hit on Monday as cautious investors pulled back from risky assets, influenced by last week’s U.S. jobs report. The report has reinforced expectations that the Federal Reserve would be wary about lowering interest rates this year.
The FTSE 100 index dipped by 0.3%, and the FTSE 250 midcap index slipped by 0.1%. This trend aligned with a broader decline in global stocks, although bond yields remained high after data showed unexpected acceleration in U.S. job growth in December, with unemployment dropping to 4.1%.
The U.S. government’s bond yields reached multi-month highs, reflecting trader expectations of just one rate cut from the Federal Reserve this year. Meanwhile, British bonds are at the center of a global bond market selloff, driven by steep borrowing costs sparking concerns over Britain’s fiscal sustainability. The energy sector, however, stood out as an outlier, gaining 1.4% due to rising crude…
