FTSE 100 still reading the tea leaves

As just covered in the previous update, it was a lower close for the FTSE 100 yesterday. The index ended the day, 24 points lower, at 8,224.19. The session low was set at 8,192.31 and perhaps importantly, the index did not fall below the prior low, at 8,189. That said the futures price this morning is not exactly ramping higher and the fallout from the higher UK yields is still a barrier to further gains. In truth it is actually quite a surprise those much higher UK yields have not had more of a dampening effect. However, as explained before, those are in the longer end of the curve and that does not necessarily impact the short-term price action of the stock markets. Also to note; many participants continue to expect the BOE to look through all that and add fresh stimulus via more immediate interest rate cuts. So, with that in mind, the UK CPI and RPI inflation reports could be crucial tomorrow morning (7am GMT), because if they show any increase at all, it could be very detrimental for the FTSE 100 by the close tomorrow evening. That might explain the degree of inertia in the futures price action this morning, where the index is right now priced to open unchanged