Brief

FTSE 100 drops as bond yields hit 24‑year high and oil falls

The index slipped 48.17 points to 10,636.71 as investors reacted to higher yields and a softer oil market.

By Felo News Desk · Published Tue, 29 Sep 2026 18:20:25 GMT

The FTSE 100 fell 48.17 points, or 0.5%, to 10,636.71 on Tuesday as US Treasury yields reached a 24‑year high, sparking concerns that rising inflation could prompt further rate hikes. The decline was offset by a 0.2% rise in the FTSE 250 and a 0.4% gain in the AIM all‑share index.

European markets mirrored the fall: the CAC 40 in Paris slipped 0.5%, while the DAX 40 in Frankfurt edged up 0.1%. In New York, the Dow Jones Industrial Average was down 0.7% at the time of the London closing bell, the S&P 500 fell 0.4%, and the Nasdaq Composite slipped 0.2%.

Oil prices eased after President Donald Trump said on Monday he expects talks with Iran to continue. Brent futures were quoted at $104.44 a barrel in London at market close, down from $107.60 late on Monday. The decline follows a day when Trump rejected an Iranian proposal to reopen the Strait of Hormuz, a move that had earlier pushed Brent above $100 a barrel.

Back in the UK, Prime Minister Andy Burnham told the Labour Party conference that his social‑care overhaul would be funded by changes to the pensions triple lock, which will be adjusted from 2030 to remove the link to average earnings. He also pledged to strengthen public control of water and give local leaders new powers to hold water companies accountable.

Key facts

FTSE 100 fell 48.17 points to 10,636.71 (independent.co.uk)
US bond yields hit a 24‑year high (independent.co.uk)
Brent futures quoted at $104.44 a barrel (independent.co.uk)
Prime Minister Andy Burnham announced pension triple‑lock change (independent.co.uk)

Background

The fall follows a week of rising oil prices and higher US Treasury yields, with traders wary of inflation and geopolitical risks in the Middle East.

Timeline

2026-09-28 — Gold prices fell to a seven‑week low as oil and dollar rose
2026-09-13 — Oil prices stayed above $100 a barrel amid shipping risks
2026-09-29 — Oil prices rose above $100 after Trump rejected Iran’s Hormuz plan

Why it matters

The index decline reflects investor anxiety over higher borrowing costs and a softer energy market, impacting corporate earnings and consumer spending.