FTSE 100 slips as bond yields hit multi-decade highs, energy shares soar

Oct 8 (Reuters) - London stocks slipped on Thursday as surging oil prices and a global bond rout brought inflation worries back to the forefront, but sharp gains in energy shares limited overall declines.

The blue-chip FTSE 100 index closed 0.2% lower, after touching its lowest level in more than three months in the session, while the midcap FTSE 250 slipped 0.4%. 

• Yields on the benchmark 10-year gilt touched a 19-year high of 5.527% as soaring oil prices sparked a global bond selloff

• Long-dated 20-year and 30-year gilt yields also inched to multi-decade highs, each surpassing the 6% threshold

• Brent crude futures rose 4.5% to above $104 per barrel, as attacks on shipping in the Gulf and the Strait of Hormuz heightened supply concerns, while a hurricane disrupted US offshore production [O/R]

• Energy stocks jumped 3.7% to a record high with oil majors BP and Shell up 4% and 3.6%, respectively

• On the flip side, heavyweight banks slipped 1.8%, weighing down the benchmark FTSE 100; HSBC and Standard Chartered lost about 2% each, while Lloyds was down 1.6%

• Healthcare stocks were the biggest losers, down 2.2%, marking their biggest one-day fall in over two months

• Bank of England Governor Andrew Bailey emphasized the need for governments to strengthen fiscal credibility amid the ongoing global bond selloff to reassure investors

• Among others, Tesco shares rose 5.2%, topping the FTSE 100, after the food retailer raised its profit forecast to £3.15 billion to £3.3 billion for fiscal 2026/27

• Imperial Brands gained 5.1% after the tobacco maker said it was on track to meet its full-year guidance and launched a new £1.5 billion pounds share buyback

• Insurer Standard Life lost 3.8% after Aberdeen sold 52 million shares in the company, reducing its stake by half

($1 = 0.7571 pounds)

(Reporting by Darshan Kumar in Bengaluru; Editing by Vijay Kishore and Joyjeet Das)