The FTSE 100 is down by 96 points, or 1.4%, at 6,555.85 on Monday afternoon. Having gained momentum on Wednesday and Thursday, the index is now lower than where it began the week.
The dip is in line with significant falls in Europe and Asia as rising bond yields raised eyebrows over the prospect of higher interest rates.
Craig Erlam, senior market analyst at OANDA Europe, commented on a dramatic end to the week for the FTSE 100.
“The rapid rise in yields this week has come despite a perfectly competent performance from Fed Chair Jerome Powell in front of the Senate Banking and House Financial Services Committees. He gave his best assurances and it’s seemingly fallen on deaf ears,” said Erlam
“I expect we’ll see a lot more of this from central banks in the coming weeks if stock go into freefall. Despite a couple of days of losses, we’re very much not in that territory yet – this is not a taper tantrum – and policy makers may be perfectly comfortable with what’s happening.”
FTSE 100 Top Movers
Out of the few companies that did make gains on Friday, International Consolidated Airlines (3.96%), Reckitt Benckiser (1.48%) and Rentokil Initial (0.83%) led the way at the top of the index.
At the bottom end of the FTSE 100, British Land Co (-5.37%), Rightmove (-5.32%) and Anglo American (-5.09%), were the day’s biggest fallers.
Pets At Home
Pets At Home (LON:PETS) has upgraded its profit guidance again as raised demand for pets during lockdowns is showing no signs of slowing down.
The FTSE 100 company announced on Friday that it is forecasting its underlying pre-tax profits to reach £85m, up £12m from its previous forecast of £77m.
Hikma Pharmaceuticals (LON:HIK) announced on Friday that it expects its yearly operating profit to rise during 2021 having been tasked with supplying emergency treatments for Covid-19 patients.
The FTSE 100 company confirmed its core operating profit rose by 11% to $566m during 2020, up from $508m the year before. Hikma said its profit was driven by strong growth in sales of Generics and Injectables.