FTSE 100 continues to edge up
The index is up 2.2% in Asian trading hours on Tuesday, carrying on the positive momentum from the previous day.
UK benchmark FTSE 100 index rose 2.2% in pre-market trading hours on Tuesday 31 March, based on IG trading data.
IG's pre-market FTSE 100 price estimates show the index trading at a price of 5,625.4 as at 02:15 GMT.
Healthy Monday for the FTSE 100 index
The benchmark had closer 0.97% higher on Monday 20 March, in line with the positive trajectory of US indices – a change in tempo from the significant losses made in the previous three Mondays.
IG Asia market strategist Pan Jingyi stated in a client note that with the US coronavirus emergency relief bill being passed into law and ‘finding its way to the economy’, this has led to the S&P 500 and Dow Jones Industrial Average edging up 3.35% and 3.19% respectively.
Similarly, the FTSE 100 index was able to perform healthily for the most part on Monday, despite a 2.78% drop in the first hour of trading. It gradually recovered 3.8% of its price to finish the day at 5,563.74.
According to IG UK chief market analyst Chris Beauchamp, ‘a bounce needs to clear 5600 and then move on above 5800 to revive the upward move’.
All eyes are now turned to a slew of key March economic reports slated to be released this week, which have historically impacted investor sentiment.
UK Prime Minister Boris Johnson tests positive for the coronavirus
Last week, the FTSE 100 was on track to ending the week on a high after trading 12% higher over the first four sessions. However, those gains were reversed on Friday 27 March, with investors preferring to cash out for profit as the number of coronavirus cases in the UK continue to rise.
UK Prime Minister Boris Johnson and Health Minister Matt Hancock had also revealed on Friday that they tested positive for the virus.
This had also shaken the weekend market’s confidence, as evident by Footsie futures dropping around 3% in IG’s after-hours trading.
There are now a total of 22,141 confirmed Covid-19 cases and 1,408 deaths in the UK.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets