Will the FTSE 100 index open lower?

• FTSE 100 futures are trading at 7,128 in pre-market trading on Thursday (08 July 2021)
• This is a drop from the previous day’s closing of 7,151
• The Footsie ended higher on Wednesday, aided by energy and mining stocks
• With US markets struggling, IG analyst Chris Beauchamp said it ‘will be tough’ for European markets to establish a ‘sustainable bounce’
• Interested to go long or short on the FTSE 100 index? Open an account with us today to get started.

FTSE 100 futures: What’s the update?

UK blue-chip barometer FTSE 100 index is down in overnight trading, IG data indicates.

IG's live FTSE 100 futures price estimates showed the index trading at a median price level of 7,128 as at 05:25 GMT+1 on Thursday (08 July 2021).

This represents a 0.3% dip from the previous day’s gains, when the Footsie had rallied 50 points and to close at 7,151.02.

Why did the FTSE 100 index close higher?

The FTSE 100 finished higher on Wednesday, boosted by energy and mining stocks.

Royal Dutch Shell led the charge earlier in the session, rising over 2% in early trade, after it announced plans to increase total shareholder distributions to within the range of 20-30% of cash flow from operations.

This move has come ‘as a result of strong operational and financial delivery, combined with an improved macro-economic outlook’, the company said in an update, adding that the level of additional distributions will be revealed in its upcoming Q2 financial results on 29 July.

However, Shell, along with other energy stocks, were unable to sustain their upward momentum, with the sector dragging down the overall index by 0.6%, as oil price volatility returned to the markets due to a lack of consensus from the latest Opec+ supply talks.

Later, mining and metal stocks made even more impressive leaps, with Anglo American topping the leaderboard by closing the session 3% higher. Australian iron ore miner BHP ended 2.8% higher, while rival Rio Tinto rallied 2.2% for the day.

Steel mining company Evraz concluded the day 2.3% higher, while Anglo-Swiss commodity trader Glencore managed to end 0.7% higher.

What’s the outlook for FTSE 100?

IG Chief Market Analyst Chris Beauchamp said that European indices, including the FTSE 100, ‘have generally been able to hold on to at least some of their gains’.

However, he noted that with Wall Street struggling, ‘it will be tough for European markets to really establish the groundwork for a sustainable bounce’.

Elsewhere, UK Prime Minister Boris Johnson also confirmed earlier this week that fully vaccinated travellers will not have to quarantine upon returning from amber list countries.

With vaccine efficacies more certain based on recent studies, authorities ‘will work with the travel industry towards removing the need for fully vaccinated arrivals to isolate on return from an amber country’, Johnson said during a press conference.

This could mean better days are ahead for aviation stocks and the overall index.

Despite being down in pre-market trading on Thursday, 62% of IG clients are currently bullish on the FTSE 100 index and are net long in their positions.

How to trade FTSE 100 index

You can take a position on the FTSE 100 for just a small initial deposit with spread bets or Contracts for Differences (CFDs).

Spread bets are completely tax-free, while CFDs are free from stamp duty. CFDs also give you direct market access (DMA), providing increased transparency useful for more advanced traders.

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