FTSE 100 futures trading flat as investor optimism wanes

FTSE 100 futures are trading flat after market close on Tuesday, suggesting that the blue-chip index will open in much the same manner on Wednesday, as well as highlighting how investor optimism has waned after the UK government revealed its confusing ‘road map’ for easing lockdown restrictions.

On Sunday, the British Prime Minister Boris Johnson unveiled his 50-page road map out of lockdown much to the confusion of UK citizens, with the conditional plan unclear on exactly when or how quarantine measures will be relaxed.

Investors can trade the FTSE 100 directly, non-stop from Sunday 11:02pm to Friday 10pm thanks to extended hours and weekend trading available on IG’s platform.

FTSE 100 lifted marginally by furlough extension

The blue-chip index closed 0.9% higher on Tuesday to 5944.77, with UK equities supported by the government’s decision to extend its job retention scheme by four months to the end of October.

British chancellor of the exchequer, Rishi Sunak, may have quelled fears of furloughed employees by extending the scheme, but business owners are still concerned about how much of the cost they will have to bear.

‘The decisions to extend the furlough scheme through to the end of October and, at least for the moment, to continue support at the existing level, are welcome in order to help both employers and employees as we move through this next stage of allowing different businesses to return to work,' Jo Keddie, head of employment at Winckworth Sherwood said.

FTSE 100: technical analysis

The FTSE 100 failed to maintain its initial gains yesterday, with the index faltering at the 61.8% Fibonacci resistance level, according to Josh Mahony, senior market analyst at IG.

‘While the price started turning back towards that initial low of 5895 overnight, we are seeing some stability come into play as the European markets open,’ he said.

‘The recent uptrend does remain intact, and it makes sense to expect further upside unless we see the price break below 5895 support,’ Mahony added.

How to trade indices with IG

Looking to trade the FTSE 100 and other major indices over the weekend or during normal trading hours? Open a live or demo account with IG and buy (long) or sell (short) the index using derivatives like CFDs and spread bets in a few easy steps:

1. Create an IG trading account or log in to your existing account

2. Enter ‘FTSE 100’ 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

How to trade the FTSE 100 this weekend

Did you know? You can trade forex and indices like the FTSE 100 during Saturday and Sunday with IG. Our world-leading trading platform is the only solution to offer weekend trading on indices. Using CFDs, you can be agile within our weekend markets. Whether you want to go long (buy) or short (sell) the FTSE 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.