The latest from London: The 10-year UK gilt surges

Trailing Asia, the FTSE starts the day in the red, down 1.3%, as bond yields rise sharply, while oil prices remain sky-high. The WTI is now at its highest level in 7 years, Brent crude is close to its 2018 highs.

While inflations soars, the economic growth shows signs of slowing, and the threat of stagflation is ever present. The yield on the 10-year UK gilt rose to 1.08 per cent.

Banks and energy stocks were among the biggest gainers yesterday, with Barclays and Lloyds leading. Supermarket chain Tesco led the index after it raised its guidance following strong H1 results.

Investors will monitor the U.S. ADP report today to get some more clues about the state of the economic recovery in the US.

 

Things to read:

Zuckerberg Responds – Claims that Facebook Prioritises Profit “Just not True” (Bloomberg)

Cotton Prices Surge to Highest Level in a Decade (Wall Street Journal)

Record gas prices hit bonds as investors fear wider damage (Financial Times)