London's FTSE 100 index is projected to extend its losses this morning, building on declines from Monday. This follows a period of tension in European bond markets.
A bond sell-off has impacted Europe, stemming from tensions in France where the Prime Minister imposed a curfew to manage riots. The 10-year yield on French bonds increased by approximately 13 basis points, reaching 4.9 per cent. The gap between French and German 10-year yields also widened to its highest closing level since early 2012.
Adding to market pressures, oil prices are nearing $110 per barrel. This rise comes as investors assess ongoing conflicts in the Middle East and Eastern Europe, alongside indications of strong energy flows from the Persian Gulf.