Oct 2 - London stocks gave up early gains and closed lower on Monday as rising yields pushed equities down, while defence firm BAE Systems was among the few bright spots on the large-cap index after winning a contract to build attack submarines.
"UK yields are also pushing higher after last week's upward revisions to GDP, with bond investors seemingly concerned that the Bank of England may have to hike rates again between now and the end of the year," Michael Hewson, chief market analyst at CMC Markets UK, said. Domestic manufacturing activity slowed sharply in September, though less steeply than the month before when it shrank at the fastest rate in more than three years, a survey showed.
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