FTSE 100 index rallies in after-hours trading
FTSE 100 futures show the index to be attempting a rebound going into Wednesday’s session, following Tuesday’s historic oil price rout.
UK benchmark FTSE 100 index is trading up 1% in pre-market hours on Wednesday 22 April 2020, based on IG data.
IG's pre-market FTSE 100 price estimates showed that the index increased by just over 50 points to push above the 5680 mark as at 03:00 GMT on Wednesday.
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.
Tuesday’s historic oil price collapse
On Tuesday 21 April 2020, the Footsie fell 2.85% across the day with Brent crude producers leading the charge, as oil prices plunged to historic lows.
WTI crude and Brent crude futures each collapsed as much as 55.83% and 20.05% to as low as US$7.26 and US$20.11 per barrel respectively as at 05:00 GMT on 22 April 2020, based on IG oil futures trading data.
The oil price drops came as oil producers ran out of storage space in the face of the current demand wipe-out caused by the coronavirus pandemic, forcing suppliers to have to pay traders to buy the oil from them, rather than pay heftier storage charges.
Oil major BP closed Tuesday over 3% lower, while Royal Dutch Shell UK shares finished 4.24% down.
Are you bullish or bearish on the FTSE 100? Either way, you can buy long or sell short on the FTSE 100 index and other indices using CFDs and other instruments offered on IG's world-leading trading platform. Start today by opening an IG account.
Further downsides for FTSE 100 index ‘look likely’
With oil prices still in negative momentum, IG UK senior market analyst Joshua Mahony believes that further downsides ‘look likely’.
‘The big question is whether we break below 5529 to bring about another bearish signal,’ he wrote on Tuesday, adding that the short-term bearish picture would only be negated with a rally up through 5846 resistance.
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.
React to global volatility
Market volatility continues as coronavirus concerns amplify. Trade with IG and 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 only incur a fee when triggered
- Round-the-clock assistance – our highly skilled team are available when you need support
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
