The FTSE 100 looked set to extend its losing streak for a third straight session as blue chip shares fell sharply on concerns about rising interest rates.
The FTSE 100 retreated by 110.75 points, or 1.5 per cent, to a one-month low of 7,395.56 as unexpectedly high wage growth in the three months to the end of June revived fears that the Bank of England may raise interest rates next month to tackle sticky inflation. The FTSE 250 dropped 100.45 points, or 0.5 per cent, to 18,660.49.
These concerns pushed bond yields up and weighed on rate-sensitive stocks such as property companies, as rising rates can result in property values falling to compensate for higher financing costs.
Segro, the warehouse landlord, dropped by 14½p,
