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 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.

FTSE 100 futures marginally lower amid Covid-19 second wave fears

FTSE 100 futures are trading slightly lower, suggesting that UK stocks recent recovery is running out of steam amid a myriad of macroeconomic headwinds.

FTSE 100 Source: Bloomberg

FTSE 100 futures are trading marginally lower on Wednesday, with UK stocks recent recovery showing signs of losing momentum.

The blue-chip index closed 0.17% higher on Wednesday at 6253, with its rally slowing amid fears of a second wave of Covid-19 cases that could see the UK forced to reintroduce strict lockdown measures.

Earlier this week, the FTSE 100 fell below the 6000 points benchmark, with investors pulling out of riskier assets after news emerged that China shutdown a food market in Beijing after a spike of Covid-19 cases.

The news exacerbated fears of a second wave of coronavirus cases emerging globally, which would force governments to reintroduce stricter lockdown measures, plunging the global economy into an even deeper recession.

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 today by opening an IG account.

FTSE 100 moves upwards after pause

Having rallied sharply on Monday, breaking through short-term trendline resistance, the FTSE 100 then calmed on Tuesday, consolidating around 6200 after a push to 6300 that created a new higher high, according to Chris Beauchamp, chief market analyst at IG.

‘Further gains may see this level broken, which would bring 6400 and then 6500 into view,’ he added. ‘The rebound from Monday’s low reasserted the bullish view here, which remains in place unless we see a drop below 6100 that might suggest a move back to 5950.’

chart
chart

Investors believe stock market is ‘overvalued’

According to a recent survey carried out by Bank of America (BofA), 98% investors said that they think the financial markets are ‘overvalued’ after rebounding from March lows due to global governments stimulus packages to offset the economic impact of the Covid-19 pandemic.

Cash levels at fund managers fell in June to 4.7%, down from 5.7% the month prior, with 93% of investors surveyed admitting they were growing increasingly concerned about the prospect of a prolonged recession.

BofA said in the report that the recent rise in investor optimism remains ‘fragile’ and unlikely to be maintained amid the myriad of macroeconomic headwinds.

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

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.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

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. All shares prices are delayed by at least 15 mins.

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 Tuesday 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.