UK Equities Lag Peers as Rising Gilt Yields Curb Market Sentiment

UK stocks underperformed European peers as rising gilt yields pressured domestic investor sentiment. While luxury and energy stocks provided some stability, banking and rate-sensitive sectors saw mild selling. Analysts noted that upward pressure on yields reflects expectations of prolonged monetary tightness and sluggish economic momentum in the UK. Despite global markets showing mixed trends, the FTSE struggled to maintain traction as traders reassessed earnings outlooks and sector valuations.