UK stocks extend losses, BoE moves to stem bond selloff

The pound extended recent declines, falling 0.3%, even as data showed Britain's unemployment rate fell to 3.5% in the three months to August, the lowest since 1974.
Pedestrians leave and enter the London Stock Exchange
Pedestrians leave and enter the London Stock Exchange Reuters

LONDON: UK's main stock indexes fell on Tuesday as the global sentiment continued to worsen on fears of higher interest rates and geopolitical risks, with investors focussing on fresh measures by the Bank of England to limit the rout in government bonds.

The central bank, trying to stem a collapse in Britain's 2.1 trillion pound ($2.31 trillion) bond market, said it would buy up to 5 billion pounds of index-linked debt per day, starting Tuesday, until the end of this week.

The pound extended recent declines, falling 0.3%, even as data showed Britain's unemployment rate fell to 3.5% in the three months to August, the lowest since 1974.

The blue-chip FTSE 100 fell 0.8% by 0720 GMT, with cyclical stocks such as BP, Rio Tinto and HSBC dragging the index lower. The midcap FTSE 250 index dropped 0.7%. Both indexes were hovering near one-week lows.

Ukraine-focused miner Ferrexpo Plc fell 8.1% as it temporarily suspended production after Russian missile attacks damaged state-owned electrical infrastructure.

Marston's gained 0.7% after the pub operator said annual total retail sales came in higher than 2019 numbers, as people continued to splurge on drinks and food.

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