FTSE 100 futures: UK market finds its footing despite record daily death toll
IG’s pre-market FTSE 100 price estimates indicated that the index has found support above 5,700.
UK benchmark FTSE 100 index is trading flat in pre-market hours on Thursday 09 April, based on IG data.
IG's pre-market FTSE 100 price estimates showed the index moving sideways along a price level of 5,715.0 as at 05:30 GMT, despite the UK’s daily Covid-19 death toll surpassing 900 for the first time in the National Health Service’s most recent update.
FTSE 100 index broke through 5,700 on Tuesday
The Footsie has seen decent gains in recent days, following an easing of oil price war tensions between Saudi Arabia and Russia, as well as a slowdown in coronavirus infections across the UK and other major European markets and hotspots last weekend.
On Tuesday 07 April, the index broke through the 5,700 ceiling to hit a two-week high of 5,738.2. It has since retraced slightly, but has managed to maintain some stability above 5,600 – its former resistance level.
On Wednesday 08 April, IG UK chief market analyst Chris Beauchamp had written that a move back above 5,700 is required for there to be ‘a continued positive view’ for the FTSE.
‘Below 5,570 a more neutral view emerges, targeting 5,500. Further below this, the 5,350 zone comes into play, which acted as support in late March and early April,’ he wrote.
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For now, the bear case appears to be in the rear-view mirror, with FTSE 100 futures having sustained a post-5,700 level for the last 12 hours.
Top Wednesday gainers on the London Stock Exchange were: travel and leisure company Whitbread (+9.08%), broadcast group ITV (+7.16%), investment bank Hargreaves Lansdown (+5.26%), computer and software services firm Aveva Group (+5.18%) and metals and mining giant Evraz (+5.16%).
Weekend UK 100 hinging on coronavirus and oil updates
The FTSE 100 index has recovered nearly 8% since last weekend but is still down roughly 27% from pre-coronavirus levels.
The coming days will be telling for the FTSE 100’s near-term performance, with Saudi Arabia and Russia reportedly set to discuss production cuts that US President Donald Trump had hinted could amount to 10 million barrels a day.
Furthermore, a new Bloomberg report suggested that there were more coronavirus-related deaths in the UK than the government has been able to track. It stated that the Office for National Statistics reported a total of 1,649 Covid-19 deaths up to 27 March, while the Department of Health and Social Care found a much lower number of 926 deaths in the same period.
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