FTSE 100: bond yields hold back the growth of the index
Current trend
The FTSE 100 index shows a lateral trend, trading at 6800.0.
World stock indices continue trading near their highs, but recently the growth rates have noticeably decreased. The key point to which investors are turning their attention is the significant fluctuations in the bond markets of the leading countries.
The global uptrend in bonds began with the growth of securities in the US, but now this dynamics is supported by the markets of other countries. The yield on government bonds of Great Britain also showed an increase: over the last month, one can note an increase in the yield of annual bonds from –0.024% to –0.005%, five-year bonds growth from 0.137% to 0.364% and ten-year bonds increase from 0.623% to 0.785%.
The growth leaders in the index are: British Land Company Plc. (+4.60%), Rolls-Royce Holdings Plc. (+4.11%), Land Securities Group Plc. (+4.02%), AstraZeneca Plc. (+3.64%). Among the leaders of the decline are: Just Eat Takeaway (–2.15%), Royal Dutch Shell Plc. Class B (–1.84%) and CRH Plc. (–1.63%).
Support and resistance
Index quotes continue to correct, moving within the global sideways channel. Technical indicators are in a state of purchase. The fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator is in the positive zone.
Resistance levels: 6900.0, 7000.0.
Support levels: 6675.0, 6300.0.
