FTSE 100 falls as high yields, inflation worries return to fore

London's FTSE 100 fell on Thursday, dragged by miners and bank stocks on concerns about rising bond yields and volatility in US markets, while engineering company Meggitt fell after its annual profit halved due to the COVID-19 pandemic.

The blue-chip FTSE 100 index slid 0.5%, with mining stocks, including Rio Tinto, Anglo American, and BHP, leading the declines.

Resurgent worries about rising US bond yields hit global shares as investors waited to see if Federal Reserve Chair Jerome Powell will address concerns about the risk of a rapid rise in long-term borrowing costs.

Meanwhile, Bank of England policymaker Silvana Tenreyro said there was no good evidence that cutting interest rates below zero would, past a certain point, weaken Britain's economy rather than boost it.

The domestically focused mid-cap FTSE 250 index fell 0.5%.

Ladbrokes owner Entain fell 2.0% after it held back declaring a dividend despite reporting a jump in 2020 earnings. It also said it was expecting online volumes to ease when shops re-open after surging during lockdowns.