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FTSE 100 in the red as rising bond yields provide continued cause for concern

FTSE 100 could benefit again from rising oil prices

FTSE 100 is down 0.53%, by 35 points, during morning trading on Friday. The index is down to 6,615.82 points as a knock-on effect of a sell-off in America brought about by a rise in US bond yields.

“After Fed chair Jay Powell’s comments last night, that the Fed was focussed on its dual mandate of unemployment and inflation, and that the central bank was a long way from meeting either, would under normal circumstances, have been enough to assuage market concerns about a premature tightening of policy,” commented Michael Hewson at CMC Markets.

“By not specifically referencing or expressing concern over the recent move higher in longer term US yields, and looking to hold the markets hand, it was perhaps not surprising that the bond sell-off continued, however whether the sell-off is sustained is a different matter entirely.”

FTSE 100 Top Movers

The Asia focused banks, Standard Chartered (2.84%) and HSBC (1.75%) and supermarket giant Sainsbury (1.48%) led up the index during the morning session.

London Stock Exchange Group (-5.87%), Scottish Mortgage Investment Trust (-5.15%) and Admiral Group (-3.17%) are the biggest fallers on the FTSE 100 so far.

ConvaTec

ConvaTec, the medical technology company, confirmed a rise in full-year revenue along with a fall in earnings during 2020. For the year ending in December 2020, ConvaTec’s revenue increased by 4% to $1.89bn, while pre-tax earnings fell by 1.1% to $350m. 

According to a statement by the FTSE 100 company, ConvaTec’s performance during 2020 was driven by strong growth in the Infusion Care and Continence & Critical Care businesses, offsetting limited growth in Ostomy Care and a decline in Advanced Wound Care.

Triple Point Social Housing REIT

Triple Point Social Housing REIT recorded an operating profit in 2020 of £30.2 million, up from £26.9 million the year before.

The profit came in addition to the company acquiring 58 properties (400 units) during the year at a total investment cost of £78.9 million. The trust’s total investment portfolio now stands at 445 properties.

Oil Prices

Oil prices have climbed to a 14-month high as Brent crude oil reached $67.85 per barrel today, its highest level since January 2020. West Texas Intermediate is up to $64.8 per barrel on Friday morning.

In the UK, the FTSE 100 has benefited from strong performances from oil companies in recent weeks, in addition to mining firms, relying on both sectors for gains. 

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