Rising UK yields eclipsing oil price gains as FTSE 100 remains under pressure

Following on from the previous update noting the further falls across a number of bond markets and the rising yields that has produced we now turn to the UK and the FTSE 100. We have said before; that under the current circumstances the rise in UK yields is eclipsing any support for the index that might have come from a further rise in the oil price. 

Well, you can see how that has played out so far today. Brent has lifted above $102 per barrel, but that has not added any support for the UK stock market, because the UK 10 year has reached 5.28% this morning and that is the highest for decades. That is adding further downside pressure on the FTSE 100. The index has already busted well below its 50 day moving average yesterday (now around 10,738) and it is not too far removed from a potential test of the 100 day (now at 10,562). As to whether that gets put to the test remains to be seen. The low seen so far has been set at 10,620. It is right now at 10,628