The British stock market continues its downward correction after the end of the corporate reporting period, which supported the quotes. Now the leading index of the London Stock Exchange FTSE 100 is trading around 7450.0.
At the moment, the situation in the economy comes to the fore, as well as the actions of the Bank of England, which yesterday once again raised the interest rate by 50 basis points, bringing it to 3.50%. Each increase in value entails an increase in the cost of loans, which most companies in the technology sector cannot do without. The decision of the regulator this time was not unanimous: 2 out of 9 members of the board were in favor of maintaining the indicator at the current level. If the number of opponents of the interest rate increase grows, the Bank of England may revise its monetary policy.
Another important factor in the current dynamics of the stock market remains the situation in the bond market: the popular 10-year UK Treasury added 0.86%, trading at a rate of 3.273%, and long-term 20-year added 0.87%, and their yield is 3.700%.
The growth leaders in the index are International Airlines Group (+2.12%), Berkeley Group Holdings Plc. (+1.39%), Barratt Developments Plc. (+1.19%).
Among the leaders of the decline are Just Eat Takeaway (-5.62%), Ocado Group Plc. (-4.15%), DS Smith Plc. (-3.83%).
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 and are reversing downwards.
Technical indicators remain in the state of purchase 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: 7400.0, 7270.0. | Resistance levels: 7500.0, 7630.0.