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FTSE 100 has biggest one-day fall since May as European bond sell-off deepens

The FTSE 100 fell about 2% in early trading on 1 October, its biggest one-day drop since May, as a bond sell-off pushed government borrowing costs to multi-decade highs. UK 30-year gilt yields passed 6% for the first time this century.

2 outlets · 0L · 0C · 2R First reported Account updated
Image: City A.M.
Image: The Telegraph

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The story, neutrally told

The FTSE 100 suffered its biggest single-day drop since May on Thursday 1 October, as a continent-wide sell-off in bond markets hit European stocks, according to City A.M. London's index fell two per cent in early trading, wiping out all its third-quarter gains in one morning, and the losses led similar falls across Europe. The Telegraph also reported that the FTSE 100 tumbled amid a bond market sell-off.

Banks led the losses, with Standard Chartered, HSBC and NatWest each down more than three per cent, while housebuilders and construction firms such as Weir and Barratt Redrow were also among the biggest fallers as traders bet energy prices would stay high for longer. France's Cac, Amsterdam's AEX and Frankfurt's Dax were all down significantly at the open, which analysts attributed to higher energy prices and further strain on government bonds. City A.M. links the bond sell-off to concern about sticky inflation caused by the war in Iran and to large budget deficits in western countries, which have led investors to avoid long-dated government debt; the conflict is in its eighth month.

The US 10-year Treasury yield has risen by more than 110 basis points this year, as has the Japanese 10-year yield, and the UK 30-year gilt yield has passed six per cent for the first time this century. Saxo strategist Neil Wilson said the "relentless rout in the bond market is sending investors running for cover", while Jefferies European economist Mohit Kumar said deficits are the bigger worry than inflation, expecting oil prices to revert over six to 12 months but seeing no effort to curb deficits.

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Framing
Both outlets frame it as a market sell-off driven by the bond rout. City A.M. leads with the scale of the FTSE fall and gives analyst commentary on inflation and deficits; the Telegraph headline stresses the tumble amid the bond sell-off.
Emphasis
Scale of the fall, bank and housebuilder losses, record-level gilt yields, deficits and energy prices as drivers.
Leaves out or plays down
No left or centre coverage to compare. The Telegraph's body text adds no detail beyond its headline.
Charged language
“rout”“sell-off”“tumbles”
For example
“It looks like the relentless rout in the bond market is sending investors running for cover” — City A.M.
“FTSE 100 tumbles amid bond market sell-off” — The Telegraph