FTSE 100 Resilience Fades Amid Inflation Concerns and Bond Market Sell-Off

The FTSE 100 index has shown resilience in the face of global weakness, bucking the trend and remaining ahead by 8.1% year to date.

While some sectors have suffered, such as semiconductor stocks which resumed their rollercoaster ride, others like the UK's domestically focused index have seen gains, adding 9% in the year to date, including a recent spike that took it to record highs.

The UK inflation rate rose to 2.9% in July, in line with estimates due to the 13% increase in household gas and electricity bills.

The bond market sell-off continues, with yields rising to multi-decade highs across major hubs such as the US, Japan, Germany, and France.