CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

FTSE 100 index rallies in after-hours trading

FTSE 100 futures show the index to be attempting a rebound going into Wednesday’s session, following Tuesday’s historic oil price rout.

UK benchmark FTSE 100 index is trading up 1% in pre-market hours on Wednesday 22 April 2020, based on IG data.

IG's pre-market FTSE 100 price estimates showed that the index increased by just over 50 points to push above the 5680 mark as at 03:00 GMT on Wednesday.

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.

Tuesday’s historic oil price collapse

On Tuesday 21 April 2020, the Footsie fell 2.85% across the day with Brent crude producers leading the charge, as oil prices plunged to historic lows.

WTI crude and Brent crude futures each collapsed as much as 55.83% and 20.05% to as low as US$7.26 and US$20.11 per barrel respectively as at 05:00 GMT on 22 April 2020, based on IG oil futures trading data.

The oil price drops came as oil producers ran out of storage space in the face of the current demand wipe-out caused by the coronavirus pandemic, forcing suppliers to have to pay traders to buy the oil from them, rather than pay heftier storage charges.

Oil major BP closed Tuesday over 3% lower, while Royal Dutch Shell UK shares finished 4.24% down.

Are you bullish or bearish on the FTSE 100? Either way, you can buy long or sell short on the FTSE 100 index and other indices using CFDs and other instruments offered on IG's world-leading trading platform. Start today by opening an IG account.

Further downsides for FTSE 100 index ‘look likely’

With oil prices still in negative momentum, IG UK senior market analyst Joshua Mahony believes that further downsides ‘look likely’.

‘The big question is whether we break below 5529 to bring about another bearish signal,’ he wrote on Tuesday, adding that the short-term bearish picture would only be negated with a rally up through 5846 resistance.

This information has been prepared by IG, a trading name of IG Markets 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.

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