The FTSE 100 futures are down by more than 1.30% as investors continue to watch the rising yields in the US and UK. The index is trading at £6,570, which is 3.30% below the highest level in February. Investors will focus on the upcoming Rightmove earnings.
FTSE 100 news: The FTSE and other global indices are falling as investors price-in a faster economic recovery. Yesterday, the 10-year gilt yield has risen by 0.4% this month to 0.76%, the highest level since 2016. In the United States, the ten-year has risen to the highest level since February last year. Indeed, analysts at Goldman Sachs wrote:
“Our economists believe that considering the current vaccine rollout and the decrease in infection rate and potential for an expansionary March budget, the UK is well-positioned for a near-term rebound,”
Rightmove earnings: Today, in addition to the yields, investors will focus on the latest Rightmove earnings. Analysts expect that the company will report mixed results and warn about the future. While the housing sector has been strong, analysts expect that there will be a slowdown as the government subsidies end. The Rightmove share price has dropped by about 10% this year.
Rightmove share price
FTSE 100 technical outlook
The FTSE 100 index has been under intense pressure in the past few days. This has seen it drop below the 23.6% Fibonacci retracement level. It has also moved below the 28-day exponential moving average. Also, the price is at an important support level that is shown in pink. Therefore, a break below this support will see the index drop to the next key level at 6,500. A move above 6,700 will invalidate this trend.
Dow Jones Daily Chart