Property groups, utility stocks and technology funds led London sharply lower yesterday as a sharp rise in bond yields rattled global markets. All three sectors are particularly sensitive to rising bond yields: property groups and utilities are favoured by income investors for their dividends, the appeal of which is diminished by improving returns on bonds, while yields also affect the discount rate that analysts use in their forecasting. This can hurt share valuations, especially of technology and biotechnology companies, whose best years are ahead of them. The big American technology stocks recovered some of their poise yesterday, but British investors were playing catch-up after Thursday night’s rout. Edinburgh Worldwide Investment Trust, a big investor in Tesla, fell by 23p, or 6.2 per

Source: The Times February 27, 2021 00:00 UTC