FTSE 100 Slides Amid Bond Selloff

U.K. stocks fell on Friday as the bond selloff continued, raising prospects of higher inflation.

Investors were hoping for action from Federal Reserve Chair Jerome Powell to address recent turmoil in the Treasury market.

Powell acknowledged he “would be concerned” by tightening financial conditions, but offered few signs that the central bank might expand monetary stimulus.

The benchmark FTSE 100 dropped 49 points, or 0.7 percent, to 6,601 after falling 0.4 percent on Thursday.

Stock Exchange Group LSE lost 5 percent despite announcing a dividend increase and issuing an upbeat outlook.

Oil heavyweight BP Plc edged up slightly as oil prices rose more than $1 a barrel, hitting their highest levels in nearly 14 months, after OPEC and its allies agreed to extend output cuts to April.

Equipment rental company Aggreko advanced 1.3 percent after it backed a 2.32 billion pound ($3.22 billion) buyout offer from private equity firms TDR Capital LLP and I Squared Capital.

In economic releases, U.K. house prices dropped for the second straight month in February, data released by the Lloyds Bank subsidiary Halifax and IHS Markit showed.

House prices fell 0.1 percent on month, but slower than the 0.4 percent decline seen in January. This was the second consecutive fall and confounded expectations for an increase of 0.3 percent.

The current national lockdown continued to weigh on hiring decisions in February, the latest KPMG and REC Report on Jobs revealed.

Permanent job placements fell for the second consecutive month, albeit at a softer pace than in January. At the same time, growth in temp billings eased to a seven-month low.