CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Why the FTSE 100 is ‘primed for more upside’

Falling UK 10-year gilt yields could mean more upside for UK’s blue-chip stock benchmark.

  • FTSE 100 Futures were trading as low as 7,030 on Friday morning (30 July 2021)
  • The benchmark closed nearly one percentage point higher on Thursday, driven by upbeat earnings and dividend declarations
  • DailyFX analysts say more upside is in store for the index
  • Feeling bullish or bearish on the FTSE 100? Open an account with us to take a position on the index.

FTSE 100 Futures: what’s the latest?

UK blue-chip equity benchmark FTSE 100 index is down in pre-market trading, IG data indicates.

IG's live FTSE 100 Futures price estimates showed the index trading at a low of around 7,030 at around 06:30 GMT+1 on Friday.

Why did the FTSE 100 close higher on Thursday?

This represents a 0.7% decrease from Thursday’s gains, when the Footsie had closed nearly one percentage point higher at 7,078.42, driven by strong earnings and bigger dividend declarations.

The rally was led by pest control company Rentokil Initial, which recorded the largest increase of the day, up 6.8%, on the back of an 18% revenue jump.

This was closely followed by publishing and exhibitions group Informa, whose shares spiked up 5.7%, after it raised its revenue forecasts for the full year on the hopes of physical events returning.

Meanwhile, oil major Royal Dutch Shell closed 3.8% higher, after reporting a second-quarter profit surge to US$5.5 billion, launching a US$2 billion share buyback programme, and boosting dividend by 38%.

On the flipside, the top faller of the day was BT Group, down 6.6%.

The telco’s shares were down as much as 8.8% at one point, after it posted a 3% year-on-year drop in revenue to £5.07 billion. This was slightly below UBS analysts’ predictions of £5.15 billion.

What’s the forecast ahead?

DailyFX markets writer Warren Venketas said that the FTSE 100 is ‘primed for continued upside’ as a result of falling UK 10-year gilt yields.

‘UK gilt yields represent the opportunity cost of investing in UK stocks, therefore, when bond yields fall, US stocks become more attractive (as a rule of thumb) and vice versa,’ he wrote.

Current price action, which shows the benchmark trading above the 100-day EMA (exponential moving average), also confirms the recent shift to the upside. ‘This uptrend may ensue if prices manage to close the week above 7100,’ Venketas added.

IG’s client sentiment data shows that 66% of retail traders are net-long as of 30 July. Traders are now at their most net-long on the FTSE 100 since 28 February this year.

What’s your view of the FTSE 100? Take a long or short position now.

Trade what you want, when you want, with over 80 top global indices and more trading hours than anyone else with us, the world’s No.1 choice for CFD trading.* Open an account to trade indices CFDs now.

* Based on revenue excluding FX (published financial statements, June 2020

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

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

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.