Will FTSE 100 futures sink below 6000 this week?
British blue-chips recovery is closely tied to the US economy with Brexit talks nearing a no-deal, with FTSE 100 futures pointing to further losses on Wednesday. But will the index slip below 6000 this week?
- FTSE 100 slides as stronger pound weighs on overseas earnings
- Could the FTSE 100 fall below psychological 6000 benchmark this week?
British blue-chips recovery is closely tied to the health of the US economy now that Brexit talks edge closer to a no-deal, with the FTSE 100 closing in the red and the futures market pointing to further losses on Wednesday.
The FTSE 100 closed 1% lower at 6037 points, with the futures market extending losses by a further 85 points at 6015 at the time of publication. But will the blue-chip index slip below 6000 this week?
FTSE 100 sees early gains eroded after pound surges
The FTSE 100 struggled to hold onto to Monday’s gains, with UK equities sliding after the pound climbed against the dollar, weighing on the value of blue-chips’ overseas earnings.
GBP/USD hit a high of 1.31714 on Tuesday, with it pulling back slightly later in the session but still up 0.45% to 1.31225 at the time of publication.
Rebounds for GBP/USD, which have been quite dramatic, have also been short lived, according to Chris Beauchamp, chief market analyst at IG.
Yesterday’s weak bounce could not hold $1.314 and the rally off the overnight lows has run its course at $1.311. Below $1.305 the price encounters the support zone at $1.3015, which has held back further downside so far this month.
FTSE 100: technical analysis
The FTSE 100 is continuing its recent rise, with the index having turned upwards after a decline into the 76.4% Fibonacci retracement level, according to Josh Mahony, senior market analyst at IG.
‘With price having subsequently broken through 6116 and (provisionally) 6164, it looks like the recent period of downside is likely to be over,’ he said. ‘This could mark the beginning of another rise towards the 6324 resistance level, thus signalling further upside over the short-term.’
That bullish outlook holds unless we break through the 6080 lows seen yesterday afternoon,’ Mahony added.
FTSE 100: After-hours trading with IG
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 by opening a live or demo account with IG today.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.
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
Prices above are subject to our website terms and agreements. Prices are indicative only
