Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

easyJet and IAG set to trade higher over the long-term

easyJet and IAG shares have taken a beating this year, with the coronavirus pandemic grounding the airline industry. But with lockdown measures being lifted, both company’s are expected to see shares rebound in 2021.

easyJet Source: Bloomberg

easyJet and British Airways owner IAG have seen their shares take a beating this year, with the coronavirus pandemic grounding the airline industry. But with lockdown measures being lifted, both companies are expected to see shares rebound in 2021.

Both easyJet and IAG have been hit hard by the Covid-19 outbreak, with two stocks down 44% and 60% year-to-date. However, since May both stocks have begun to claw back some of those losses, with investor sentiment improving after European airlines are expected to return to the skies in July.

easyJet closed 1.25% lower at 787p per share on Tuesday, while IAG finished the session 2.74% in the red at 251p.

Spain to allow UK tourists without quarantine

In a rare bit of good news for European airlines, the Spanish foreign affairs minister told British travellers that they will be allowed to enter the country without having to self-isolate for two weeks.

European airlines will be hoping that the news will prompt British citizens, particularly the 400,000 that have second homes in Spain, to visit this summer.

However, if British tourists do decide to fly to Spain they will still need to self-isolate for 14 days when they return home under new guidelines from the UK government.

IAG, easyJet and Ryanair have already launched legal action over the UK government’s quarantine rules, with the three airlines arguing that the policy will deter travellers from taking flights and derail any hopes of a recovery for the travel industry.

Earlier this month, a Ryanair spokesperson said that the ‘measures are disproportionate and unfair on British citizens as well as international visitors arriving in the UK’.

‘We urge the government to remove this ineffective visitor quarantine which will have a devastating effect on UK's tourism industry and will destroy even more thousands of jobs in this unprecedented crisis,’ the airline added.

FTSE 100 rallies back into resistance zone

The FTSE 100 has managed to regain ground since Friday's losses, with the index rising back towards a zone of resistance, according to Josh Mahony, senior analyst at IG.

That 6300-6320 region has capped price action over the past week, bringing a consolidation phase after the mid-June surge seen from the 15 June lows, he said.

‘With the stochastic oscillator tightening into a symmetrical triangle alongside this consolidation in the price action, we are awaiting the next breakout from this zone,’ Mahony added.

‘With that in mind, the bullish continuation signal comes with a break through the 6320 peak from Friday. Until then, be aware that the current rally is at risk of another turn lower to continue this consolidation phase.’

Chart
Chart

How to trade stocks with IG

Looking to trade the easyJet and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘easyJet’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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.