FTSE 100 futures down 3% suggesting blue-chip index will open lower on Thursday

FTSE 100 futures are trading lower after market close as second wave fears mount, suggesting that the blue-chip index will extend losses when the market reopens on Thursday.

FTSE 100 futures are trading 3% lower after market close as second wave fears mount, suggesting that the blue-chip index will extend losses when the market reopens on Thursday.

Over the last three trading sessions this week the FTSE 100 has lost 2.5% of its value, with blue-chip stocks having a terrible time of it on Wednesday, closing 3.11% lower to 6123 points.

IG offers extended hours trading options for the FTSE 100 index and other major indices. Buy long or sell short on the FTSE 100 via CFDs and other instruments provided by IG's market-leading trading solution. Start today by opening an IG account.

Global stocks uneasy recovery as second wave fears mount

Global equities continue to face an uneasy recovery, with stocks taking a tumble on Wednesday amid mounting fears of a second wave of coronavirus cases as governments ease lockdown restrictions.

In the US the S&P 500, Nasdaq Composite and Dow Jones indexes all closed more than 2% lower on Wednesday. Meanwhile in Europe the Euro Stoxx 50, German DAX and French CAC 40 all closed in the red.

‘Coming off the back of a huge market recovery in the months following the March low, we are finally seeing markets wake up to the obvious risks of getting too carried away at the first sign of a recovery,’ Joshua Mahony, senior market analyst at IG.

‘We are used to the Federal Reserve or Trump administration stepping in at every turn, but that reliance is certainly not A healthy reason to buy stocks.’

FTSE 100 still tiptoeing higher

The FTSE 100 has succeeded in eking out some higher highs, but it is the steady progression of higher lows that should provide some comfort for the bulls, according to Chris Beauchamp, chief market analyst at IG.

‘After rallying towards 6350 the price has come off, but the uptrend is still in place, and a higher low above 6200 should provide another possible entry point for longs,’ Beauchamp added.

‘A reversal below 6150 would likely spell the end of the current bounce and given the shallowness of the gains over the past week, this index could easily move into a more bearish phase.’

How to trade the FTSE 100 with IG

Looking to trade the FTSE 100 and other major indices? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Tesco’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.