Skip to content

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

FTSE 100 futures set to slide on poor EU economic data

FTSE 100 futures are trading below 6000, suggesting the index will open lower on Monday, with investors’ reacting to disappointing economic data from the UK, France and Germany.

FTSE 100 Source: Bloomberg

FTSE 100 futures are trading below 6000, suggesting the index will open lower on Monday, with investors’ reacting to disappointing economic data from the UK, France and Germany.

The Office of National Statistics (ONS) revealed that UK public debt at the end of July was larger than the entire UK economy for the first time in more than 50 years, with similar data from France and Germany suggesting that the eurozone’s economic recovery was slowing.

In France services flash purchasing managers’ index (PMI) came in at 51.9, down from 57.3 in July, while Germany fell to 50.8, down from 55.6 last month.

The DAX closed 0.51% to 12,764 on Friday, the CAC 40 slid 0.3% to 4896, while the FTSE 100 dipped to an intra-day low of 5995 points before finally closing a touch above 6000.

FTSE 100 futures are trading at 5991 points at the time of publication.

UK PMI data points to deep recession

Duncan Brock, the group director at the Chartered Institute of Purchasing & Supply (CIPS), said that the latest PMI data suggests that the UK is heading for the ‘deepest recession in living memory’.

He also believes that it is too early to celebrate a Covid-19 recovery, with British businesses about to face the ‘harsh reality of job shedding’ once it loses the protection of the UK government’s furlough scheme in October.

‘Reducing headcount was a quick fix for many firms struggling to maintain strong supply chains and their position in the marketplace amidst higher raw material and import costs,’ Brock said. ‘With the fastest rise in activity in the private sector since October 2013, this shows an encouraging speed towards recovery which belies the fact there are still some dark forces at play.’

‘Rising inflation, the sustainability of the UK economy during a global pandemic and the poor employment figures means we’re not out of the woods yet,’ he added.

FTSE 100: technical analysis

The FTSE 100 continues to decline, losing ground over the past week and a half, with a break below 6000 likely to open the path to 5860 and the low from the end of July, according to Chris Beauchamp, chief market analyst at IG.

‘At present price action is not pointing to any sign of a near-term rebound, with even the short-term rallies of the past week running into sellers,’ Beauchamp said.

‘A rally through 6060 would signal perhaps that a more meaningful break to the upside is developing, with the lower highs at 6110 and 6170 immediate targets in the event of a move higher,’ he added.

FTSE 100 chart
FTSE 100 chart

How to trade the Weekend UK 100

Did you know? You can trade forex and indices like the Weekend UK 100 (based on the FTSE 100) during Saturday and Sunday with IG. Our world-leading trading platform is the only solution to offer weekend trading on indices.

Whether you want to go long (buy) or short (sell) the Weekend UK 100 based on the above outlook, you don’t have to wait until the markets reopen on Monday to trade.

The weekend prices for indices and forex are quoted separately to their weekday counterparts, based on our view of the prospects for that market given client business and news flow. As a result, you can use these markets to hedge against risk on your weekday positions.

Ready to start trading indices? Open a live account or practise using a demo version today.


The information 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 Bank S.A. 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 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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

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 an index?

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

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

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.

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.