London midday: FTSE stays down amid rising bond yields; all eyes on Fed

15th Sep 2026 10:59

(Sharecast News) - London stocks were still in the red by midday on Tuesday amid rising bond yields and elevated oil prices, as investors mulled the latest UK jobs data and looked ahead to an expected rate hike by the Federal Reserve.

The FTSE 100 was down 0.3% at 10,664.28, while Brent crude was up 1% at $106.74 a barrel and West Texas Intermediate was 1.7% higher at $103.10 following reports of further Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf.

Dan Coatsworth, head of markets at AJ Bell, said: "The fact Brent crude oil held firm below $110 a barrel should be a positive for investors as it means the pressure is not getting worse for businesses and consumers.

"However, the fact oil remains at an elevated level and we're only hours away from a major interest rate decision is enough to keep financial markets on alert.

"European equities were in the red, but we're nowhere near panic stations.

"The Federal Reserve is widely expected to raise US interest rates, going against Donald Trump's desire to cut the cost of borrowing. This is new Fed chair Kevin Warsh's moment to prove the central bank's credibility of being guided by economic data rather than what the White House wants. Failing to raise rates would make Warsh seem like he is simply caving in to whatever Trump wants, something that could tarnish public opinion of the Federal Reserve as a whole.

"The 10-year US Treasury yield hit 5.03%, its highest level in 19 years, as investors digested the impact of a high oil price and the potential for multiple interest rate hikes in the near-term.

"Market commentators have long argued that Treasuries hitting 5% is the trigger for an equity market correction. At this level, investors might wonder what's the point in holding risky equities when they can get 5% on low-risk government bonds. It is a psychological level and can sometimes act as a warning sign for a market correction rather than be a guaranteed tipping point for equities to slump."

On home shores, figures from the Office for National Statistics showed the unemployment rate remained at 4.9% in the three months to July, versus expectations for an uptick to 5%.

Meanwhile, the number of payrolled employees fell by 26,000 between July and August and by 145,000 on the year, to 30.2m.

Total pay growth including bonuses eased to 3.9% in May to July from 4.2% in the previous three months, while regular pay growth excluding bonuses was unchanged at 3.5%.

Annual average regular earnings growth was 6.3% for the public sector and 2.9% for the private sector.

The data also showed that the number of vacancies in June to August 2026 fell by 8,000 to 702,000, compared with March to May.

Liz McKeown, director of economic statistics at the ONS, said: "The labour market remains broadly stable, with employment and unemployment rates largely unchanged in the latest period. However, payrolled employee numbers continue to edge down, with falls over the past year particularly evident in the retail and hospitality sectors.

"Regular wage growth has remained relatively stable in recent months, while total pay growth, which includes bonuses, has eased and was last lower nearly six years ago. There remains a notable difference between public and private sector pay growth, with public sector figures continuing to be affected by the timing of NHS pay awards this year."

McKeown said vacancies remain at their lowest level outside the pandemic period for more than a decade, with smaller businesses continuing to report that increased labour costs are affecting hiring decisions.

Richard Hunter, head of markets at Interactive Investor, said that as with the Federal Reserve, the last piece of the jigsaw for the UK central bank before its rate decision on Thursday will be the release of the consumer price index report tomorrow, where inflation is expected to have accelerated to 3.1% in August from 2.9% in July.

"Unlike the Fed however, where a hike is priced in as a done deal this week, the consensus remains that the Bank of England will stand pat at this meeting although a rise remains on the table before the year is out given relentless inflationary concerns emanating from energy prices in particular," he said.

In equity markets, software stocks - which benefited on Monday from the slump in AI-related shares - were among the worst performers. Rexl, LSEG, Informa and Experian all fell.

Trustpilot posted a rise in first-half profit and revenue and said it was on track to meet full-year guidance, but shares tumbled as the online review website acknowledged a couple of accounting issues.

On the upside, GSK edged up after saying it will pay up to $750m for an experimental cancer therapy from Chinese biotech firm Chimagen Biosciences.

DIY chain Wickes rallied after saying it was on track to meet expectations of a 10% jump in adjusted annual profit despite an uncertain consumer environment. The company posted a 1.1% rise in earnings to £27.6m for the six months to 27 June. Like-for-like sales rose 0.7%.

Kier Group also advanced as it said FY27 earnings were set to be at the top end of the board's expectations and announced it will not be making any more investments in new property developments as it focuses on its core businesses of infrastructure and construction.

Market Movers

FTSE 100 (UKX) 10,664.28 -0.31%

FTSE 250 (MCX) 23,809.32 -0.11%

techMARK (TASX) 6,002.63 -0.03%

FTSE 100 - Risers

Kingfisher (KGF) 295.40p 2.46%

Babcock International Group (BAB) 982.00p 2.31%

Marks & Spencer Group (MKS) 379.70p 2.29%

NATWEST GROUP (NWG) 695.60p 2.14%

Persimmon (PSN) 1,103.50p 1.75%

Reckitt Benckiser Group (RKT) 5,088.00p 1.72%

Admiral Group (ADM) 3,900.00p 1.67%

Legal & General Group (LGEN) 294.50p 1.66%

British Land Company (BLND) 394.80p 1.59%

BAE Systems (BA.) 1,965.50p 1.44%

FTSE 100 - Fallers

Relx plc (REL) 2,521.00p -2.96%

London Stock Exchange Group (LSEG) 8,302.00p -2.35%

Informa (INF) 883.20p -2.21%

Experian (EXPN) 2,795.00p -2.20%

Glencore (GLEN) 579.40p -2.16%

Abrdn (ABDN) 241.80p -2.03%

Entain (ENT) 493.00p -1.75%

ICG (ICG) 1,841.00p -1.60%

Diageo (DGE) 1,618.00p -1.52%

Unilever (ULVR) 4,634.50p -1.43%

FTSE 250 - Risers

Wickes Group (WIX) 193.00p 9.29%

IP Group (IPO) 68.40p 4.57%

Kier Group (KIE) 259.00p 4.11%

Travis Perkins (TPK) 596.00p 3.20%

AEP Plantations (AEP) 202.00p 2.96%

Victrex plc (VCT) 960.00p 2.46%

Ocado Group (OCDO) 212.40p 2.42%

WH Smith (SMWH) 373.40p 2.09%

Vistry Group (VTY) 270.40p 2.04%

Genus (GNS) 2,176.00p 1.97%

FTSE 250 - Fallers

Trustpilot Group (TRST) 220.40p -15.20%

Pollen Street Group Limited (POLN) 785.00p -5.20%

CMC Markets (CMCX) 701.00p -4.75%

Hays (HAS) 64.95p -3.48%

Globaldata (DATA) 56.65p -3.33%

Michael Page (PAGE) 209.20p -3.05%

Wizz Air Holdings (WIZZ) 947.50p -2.91%

Bridgepoint Group (Reg S) (BPT) 283.80p -2.13%

Auction Technology Group (ATG) 435.60p -2.11%

Pantheon Infrastructure (PINT) 115.00p -2.04%