The FTSE 100 is on course to close out a turbulent first quarter of 2021 with a disappointing session. At early morning trading the index is down by 0.3% to 6,747 points.
Yields on US 10-year government bonds rose to a 14-month high in a sign of optimism that vaccines are getting the pandemic under control.
“The bogeyman which has haunted investors since late January – rising bond yields and what they say about inflation and interest rate risks – is rearing its head once again,” says AJ Bell investment director Russ Mould.
“This put US and Asian stocks under some modest pressure and the weak sentiment has extended to Europe on Wednesday,” Mould added.
“The other message to take from the increase in bond yields is a more positive one, namely that people are feeling more confident on a vaccine-led recovery again after a period when doubt had started to creep in amid apparent signs of vaccine nationalism.”
Barring dramatic news emerging, the FTSE 100, along with stock markets across the world, are set to see out the first quarter of the year having made reasonable gains.
FTSE 100 Top Movers
Hikma Pharmaceuticals (3.68%), BT (1.79%) and Admiral Group (1.12%) were the top three risers during the morning session.
The top fallers on the FTSE 100 were Just Eat (-2.32%), Standard Chartered (-2.18%) and Shell (-1.48%).
Deliveroo (LON:ROO) plunged by 30% as the food delivery company made its debut on the London stock exchange on Wednesday, marking a disappointing start to one of the biggest IPOs in the city in the last ten years.
According to data from Refinitiv, Deliveroo was trading as low as 271p within the first 20 minutes of trading, way lower than the offering price of 390p. The UK-headquartered company priced 384.6m shares at 390p each, the bottom of its target range, meaning Deliveroo was valued at £7.6bn, which is the highest in London since Glencore in 2011.