FTSE 100 futures point to possible Friday recovery for index

The blue-chip index went under 5,000 on Thursday morning, but Friday’s pre-market prices are hinting at a possible resurgence.

UK derivative benchmark FTSE 100 futures has snapped a three-day losing streak, as the contract asset remained flat in overnight trading.

Footsie futures are trading sideways at 5,218.3 as at 4am GMT on Friday 20 March, based on IG data.

This is the index’s highest pre-market level since Wednesday 18 March. Between Tuesday 17 March and Thursday 19 March, the FTSE 100 plunged some 9.3%.

On Thursday, the FTSE 100 hit a nine-year low of 4,955.5 during market hours, as well as a 10-year low of 4,870.4 in pre-market trading.

The blue-chip index eventually closed the day session at 5,223.8 – 4.2% higher than the previous day’s closing price.

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FTSE 100’s top losers on Thursday

The index’s biggest faller on Thursday was International Consolidated Airlines Group, which erased more than 9% of its share value to close at 195 pence per share. This is down nearly 71% from its 14-month peak of 671p per share achieved only in January this year.

Commodity trading and mining company Glencore also lost 9% of its share price on the day to close at 117.30p per share. Since mid-February – around the time the coronavirus outbreak started to spread widely in the UK, Glencore’s share price has fallen by over half.

Trailing closely behind was mining company Evraz with an 8.98% valuation rout. Evraz’s share price was able to rally in morning trading, going up to 240p per share. However, it was unable to sustain this level, quickly dropping to a day’s low of 208.55p toward the end of the day.

Read also: FTSE 100 futures sink to 10-year low

FTSE 100 travel and leisure stocks on the mend

Meanwhile, following Wednesday’s massive price decline of nearly 35%, cruise operator Carnival was able to rebound on Thursday as it regained nearly 19% of its share price to close at 737.20p per share. This came after the UK government said that it had no plans on imposing a lockdown on London.

On Thursday morning, a spokesman for UK Prime Minister Boris Johnson said that ‘there is zero prospect of any restriction being placed on traveling in or out of London’, adding that the military will not be activated for any such purpose.

Other travel and leisure stocks that rose following the statement included travel agency Tui, which enjoyed an 18.8% boost in market value; and bookmaking company Flutter Entertainment, which rose 11.24% and over 600p to close back above 6,100p per share.

Low cost air carrier EasyJet was also able to enjoy a small resurgence of 2.51%, closing at 507.20p.

The day’s biggest gainer was investment firm M&G Group, which saw share price jump up 34.4% to finish at a decent 125.90p.

Buy long or sell short on the FTSE 100 index and other major European indexes by trading CFDs via IG's market-leading platform. Start today by opening an IG account.

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