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FTSE 100, British Stock Market is Under Pressure
12/28/2022 11:37 AMThe leading index of the London Stock Exchange FTSE 100 is showing corrective dynamics and is now at 7495.0.
The UK stock market continues to correct, being under pressure after serious disruptions in the functioning of the national infrastructure caused by protests from public sector employees. Between December 24 and 27, the National Union of Maritime, Rail and Transport Workers (RMT) held mass protests demanding higher wages amid a record rise in the cost of living, while medical workers continue striking. In addition, a large number of trains to London from other cities have been canceled due to transport disruptions, and traditional British shopping and leisure visits have been significantly hampered, which will certainly affect consumer spending.
Another important factor in the current dynamics of the stock market is the changing situation in the bond market. The popular 10-year UK Treasuries added 0.92% to trade at 3.667%, while the long-term 20-year ones added 0.43% to trade at 4.014%. This is the second time in a year that the yield on these bonds has exceeded the 4% threshold, which resulted in a serious decline in the FTSE 100 last time.
The growth leaders in the index are Just Eat Takeaway (+2.64%), DS Smith Plc. (+1.72%), Pershing Square Holdings Ltd. (+1.58%).
Among the leaders of the decline are Hikma Pharmaceuticals Plc. (-1.81%), Pearson Plc. (-0.85%), London Stock Exchange (-0.83%).
On the daily chart of the asset, the index quotes are completing corrective growth, holding above the resistance line of the descending channel.
Technical indicators are in the state of a sell signal, not excluding the second return of the price to the signal line. The EMA fluctuation range on the Alligator indicator remains quite narrow, and the AO oscillator histogram forms descending bars, being in the sell zone.
Support levels: 7410.0, 7260.0. | Resistance levels: 7530.0, 7690.0.