What is UK100?
UK100, commonly known as the FTSE 100 Index or the Footsie, is the United Kingdom’s premier stock market index. It tracks the performance of the 100 largest and most highly capitalized blue-chip companies listed on the London Stock Exchange (LSE). The index is capitalization-weighted, meaning companies with larger market caps have a greater influence on the index’s movements.
As of March 2025, the FTSE 100 had a total market capitalization of approximately £2.12 trillion.
The index includes many internationally focused companies, so its performance is influenced by global economic factors and currency exchange rates, not just the UK economy.
Does Bond Yield Affect UK100?
Yes, bond yields significantly affect the FTSE 100 in several ways:
Rising UK government bond yields (gilts) increase borrowing costs for companies, which can reduce profits and weigh on stock prices, including those in the FTSE 100.
Higher bond yields also make fixed-income investments more attractive relative to equities, potentially causing capital to flow out of stocks and into bonds, putting downward pressure on the index.
Conversely, falling bond yields lower borrowing costs and often encourage investment in equities, supporting the FTSE 100.
Bond yield movements are also influenced by monetary policy expectations, inflation outlook, and fiscal policy, which indirectly impact stock valuations.
Recent volatility in German and UK bond yields has caused ripple effects in the FTSE 100, reflecting concerns about interest rates and economic outlook.
Major Companies That Make Up UK100 (Selected Key Constituents)
The FTSE 100 includes companies from various sectors such as banking, energy, healthcare, consumer goods, and industrials. Some of the largest and most influential companies by market capitalization as of 2025 include:
Company Sector Approx. Market Cap (2025)
AstraZeneca Healthcare £190+ billion
Shell Energy £185+ billion
HSBC Holdings Banking & Financials £130+ billion
Unilever Consumer Goods £100+ billion
Rio Tinto Mining & Materials £95+ billion
BP Energy £85+ billion
GlaxoSmithKline (GSK) Healthcare £75+ billion
Diageo Consumer Goods Large-cap
Barclays Banking & Financials Large-cap
British American Tobacco Consumer Goods Large-cap
The FTSE 100 covers 20 industry sectors, with Banks, Health Care, Industrial Goods & Services, and Energy sectors making up about 50% of the index’s total capitalization.
Summary
What is UK100? The FTSE 100 Index, tracking the 100 largest UK-listed companies by market cap
Bond Yield Impact Rising yields increase borrowing costs and attract capital to bonds, often pressuring stocks; falling yields support equities
Key Companies AstraZeneca, Shell, HSBC, Unilever, Rio Tinto, BP, GSK, Diageo, Barclays, British American Tobacco
In conclusion, the UK100 (FTSE 100) is a major UK stock market index heavily influenced by global economic factors, including bond yields. Movements in UK government bond yields affect corporate borrowing costs and investor asset allocation decisions, thereby impacting the FTSE 100’s price action. The index is dominated by large multinational companies across diverse sectors, making it a broad indicator of UK-listed blue-chip performance
UK100, commonly known as the FTSE 100 Index or the Footsie, is the United Kingdom’s premier stock market index. It tracks the performance of the 100 largest and most highly capitalized blue-chip companies listed on the London Stock Exchange (LSE). The index is capitalization-weighted, meaning companies with larger market caps have a greater influence on the index’s movements.
As of March 2025, the FTSE 100 had a total market capitalization of approximately £2.12 trillion.
The index includes many internationally focused companies, so its performance is influenced by global economic factors and currency exchange rates, not just the UK economy.
Does Bond Yield Affect UK100?
Yes, bond yields significantly affect the FTSE 100 in several ways:
Rising UK government bond yields (gilts) increase borrowing costs for companies, which can reduce profits and weigh on stock prices, including those in the FTSE 100.
Higher bond yields also make fixed-income investments more attractive relative to equities, potentially causing capital to flow out of stocks and into bonds, putting downward pressure on the index.
Conversely, falling bond yields lower borrowing costs and often encourage investment in equities, supporting the FTSE 100.
Bond yield movements are also influenced by monetary policy expectations, inflation outlook, and fiscal policy, which indirectly impact stock valuations.
Recent volatility in German and UK bond yields has caused ripple effects in the FTSE 100, reflecting concerns about interest rates and economic outlook.
Major Companies That Make Up UK100 (Selected Key Constituents)
The FTSE 100 includes companies from various sectors such as banking, energy, healthcare, consumer goods, and industrials. Some of the largest and most influential companies by market capitalization as of 2025 include:
Company Sector Approx. Market Cap (2025)
AstraZeneca Healthcare £190+ billion
Shell Energy £185+ billion
HSBC Holdings Banking & Financials £130+ billion
Unilever Consumer Goods £100+ billion
Rio Tinto Mining & Materials £95+ billion
BP Energy £85+ billion
GlaxoSmithKline (GSK) Healthcare £75+ billion
Diageo Consumer Goods Large-cap
Barclays Banking & Financials Large-cap
British American Tobacco Consumer Goods Large-cap
The FTSE 100 covers 20 industry sectors, with Banks, Health Care, Industrial Goods & Services, and Energy sectors making up about 50% of the index’s total capitalization.
Summary
What is UK100? The FTSE 100 Index, tracking the 100 largest UK-listed companies by market cap
Bond Yield Impact Rising yields increase borrowing costs and attract capital to bonds, often pressuring stocks; falling yields support equities
Key Companies AstraZeneca, Shell, HSBC, Unilever, Rio Tinto, BP, GSK, Diageo, Barclays, British American Tobacco
In conclusion, the UK100 (FTSE 100) is a major UK stock market index heavily influenced by global economic factors, including bond yields. Movements in UK government bond yields affect corporate borrowing costs and investor asset allocation decisions, thereby impacting the FTSE 100’s price action. The index is dominated by large multinational companies across diverse sectors, making it a broad indicator of UK-listed blue-chip performance
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.