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FTSE 100 Subdued As Housebuilders Slump On Worries About Rates

U.K. stocks were subdued on Monday, as the pound remained under pressure and Brent crude prices fell below $85 a barrel for the first time since January on demand worries.

A renewed selloff in British gilts pushed euro zone yields higher after Britain's new chancellor Kwasi Kwarteng announced a sweeping package of tax cuts.

The benchmark FTSE 100 was down 9 points, or 0.1 percent, at 7,009, giving up early gains.

BP Plc and Shell both were down around 1 percent as oil extended Friday's losses on fears of lower fuel demand from an expected global recession.

Housebuilders Barratt Developments, Taylor Wimpey and Persimmon fell 3-5 percent on concerns that interest rates will rise a lot more than expected earlier.

Sainsbury was marginally higher after the supermarket chain said that it is no longer in discussions to sell 18 supermarket stores to LXi REIT Plc. Shares of the latter fell around 2 percent.

Consumer goods giant Unilever advanced 1.2 percent on news its CEO Alan Jope will retire at the end of next year.

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