FTSE 100 index falls in Friday’s futures tracking
IG analysts say the Footsie is primed for another major move lower.
UK benchmark FTSE 100 index saw what little gains made in the previous session eroded in pre-market trading hours on Friday 03 April, based on IG trading data.
IG's pre-market FTSE 100 price estimates showed that the index fell 1.3% to a price of 5,426.7 as at 04:25 GMT.
IG offers weekend trading options for the FTSE 100 Index and other major indices. Buy long or sell short on the FTSE 100 by trading CFDs and other instruments provided by IG's market-leading solution. Open an IG account today.
Slight improvement for FTSE 100
On Thursday 02 April, the Footsie closed 0.47% higher, amid what was a relatively quiet day for global markets. The S&P 500 and Dow Jones Industrial Average indexes in the US, by comparison, finished slightly over 2% on the day. Germany’s DAX edged up 0.27% at conclusion.
A zoom out at a look of the whole week reveals a similar picture. The FTSE 100 is currently still up 1.6% from Monday’s opening mark, after having spiked up as much 2.7% earlier in the week on Tuesday.
Tuesday’s rally was buoyed by Asian and US market positive momentum swings on the back of better-than-expected China manufacturing data and end-of-quarter investor asset reassessments.
IG is a world-leading online trading and investments provider for thousands of financial markets. Buy long or sell short on the FTSE 100 via CFDs and other instruments provided on IG's innovative trading platform. Start today by signing up for an IG account.
Despite the market’s slight improvement, the total number of coronavirus cases and deaths continue to rise rapidly in the UK. On Wednesday 01 April, the country recorded 561 deaths – the highest one-day death toll since tracking began. There are now 33,718 confirmed cases in the UK.
Last week, UK Prime Minister Boris Johnson and Health Minister Matt Hancock also revealed that they tested positive for the virus.
IG analyst: FTSE primed for another major move lower
From a technical standpoint, IG UK senior market analyst Joshua Mahony said that while Wednesday’s sharp decline signifies that the index is seeking to reverse earlier gains, the subsequent overnight rally has taken price ‘into a shorter-term Fibonacci resistance level, with the 76.4% level at 5475 now worth watching’.
‘As long as the price remains below the 5517 swing high, this rebound could be capped for another bearish move back towards the 5340 support level,’ he wrote, adding that the short-term outlook going into the weekend will be determined by whether there is a break below 5340 or above 5517.
In either case, he posits that there is a ‘good chance’ that the FTSE 100 is priming itself for another major move lower.
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. See full non-independent research disclaimer and quarterly summary.
React to global volatility
Market volatility continues as coronavirus dominates the global agenda. Trade with us to take advantage of:
- Tight spreads – from just 1 point on major indices, and 2.8 on US crude
- Guaranteed stops – they’re free to use, and you’ll only pay a small fee if they’re triggered
- Round-the-clock assistance – our highly-skilled team are on hand to support you
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.