BOE official sends a warning over stock market valuations-check out the FTSE 100 futures

Much earlier today a leading Bank of England official gave a surprising assessment of equity market valuation. It is not often we hear demonstrative comments from such officials, but Sarah Breeden (Deputy Governor) did just do that. 

She said that equity markets look overvalued and could decline. It is not exactly clear if she was referring to just the UK or on a wider perspective. Perhaps either way she has a point to make and it seems it has not been lost on the FTSE 100 this morning. 

Yesterday the UK benchmark once again struggled to make progress. The index ended the day, 19.45 points lower, at 10,457. We have been marking this one lower all week as earlier updates attest and so not much of a surprise here. 

Yesterday evening, as the US stock markets tanked on the news emerging out of Iran, the FTSE 100 futures took a hit too and so far this morning this index has not really recovered in terms of the effective opening call. So, it seems these comments coupled with higher UK yields are still having a detrimental impact on the FTSE 100. It was priced to effectively open below 10,350 at one point yesterday evening. The current call on that is right now around 10,390