FX.co ★ London Stocks Flat After Yesterday's Selloff

London's FTSE 100 index remained steady on Wednesday, maintaining its position at the 9,110 level. This stability came in the wake of a sharp decline of 0.9% in the previous trading session, marking its most significant one-day drop since April. The decline was sparked by a widespread selloff in bond markets throughout Europe and the United States, triggered by escalating concerns regarding rising government debt and potential inflationary consequences. In the UK, 30-year gilt yields reached their highest levels since May 1998, amplifying the challenges facing Chancellor Rachel Reeves ahead of the upcoming November budget. In the corporate arena, fund manager and insurer M&G saw its shares drop by more than 3% following the announcement of a modest increase in both profit and assets under management for the first six months. Conversely, equipment rental firm Ashtead experienced a gain of approximately 1% after reporting earnings for its first quarter that largely met expectations and revising its free cash flow outlook upward for the year.