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FTSE 100 : Market Update

12/7/2022 1:05 PM

The leading index of the London Stock Exchange FTSE 100 shows a lateral trend, trading at around 7562.0.

The UK stock market significantly slowed down its growth after the end of the corporate reporting period, which provided the main support for quotes, as well as against the backdrop of growing problems in the national economy. Most civil servants, dissatisfied with the increase in electricity bills, are again ready to protest, and according to trade unions, up to 520.0 thousand people can take part in Christmas actions, which threatens to completely suspend the activities of the post offices, medical organizations and the railway. Macroeconomic statistics confirm the negative trend: the Construction PMI in November corrected from 53.2 points to 50.4 points, one of the lowest values since the summer of 2020.

The key factor influencing the dynamics of the FTSE 100 remains the situation in the bond market. An auction was held yesterday to place 5-year UK Treasuries, the rate on which was fixed at 3.472%, which is lower than 3.626% shown earlier. If one evaluates the local dynamics in the debt securities market, then since the beginning of the week there has been a period of stabilization: the yield on popular 10-year bonds added 0.82%, amounting to 3.1070%.

The growth leaders in the index are Rolls-Royce Holdings Plc. (+3.20%), Ferguson Plc. (+2.88%), Barclays Plc. (+1.59%).

Among the leaders of the decline are Mondi Plc. (-4.74%), Scottish Mortgage Investment Trust Plc. (-3.13%), Polymetal International Plc. (-3.04%).

On the daily chart of the asset, the index quotes are completing corrective growth as part of the next wave of the Expanding Formation global pattern.

Technical indicators are holding a buy signal that is starting to weaken: the fluctuation range of the Alligator indicator EMAs is narrowing and the histogram of the AO oscillator is forming descending bars and approaching the transition level.

Support levels: 7510.0, 7320.0. | Resistance levels: 7630.0, 7800.0.

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