The UK’s FTSE 100 is taking longer to bounce back than other global indices, which are showing signs of recovery from the coronavirus pandemic, according to a new tool by Daily FX.
Since falling to its lowest point in March, the FTSE 100 has climbed by 23 per cent, which seems impressive, until you compare it with other global indices. Both the Nasdaq and Dax have risen by over 50 per cent, while other key markets, such as China’s CSI 300, have also significantly outperformed the FTSE since the pandemic hit.
Chris Beauchamp, chief market analyst at IG Markets, an online derivatives trading provider in Europe, believes the FTSE 100 is “an index that has become a victim of its own composition”.
Financials currently represent its biggest sector and Beauchamp says “a huge chunk of the index in terms of weighting is really underperforming”.
He adds that the recent resurgence in sterling has also hit the FTSE, as its firms have lost value overseas.
For traders looking to keep track of the global indices and their relative rates of recovery, Daily FX has launched a new tool that provides a snapshot of international market performance.
Market Health allows traders to get a complete picture of global markets and indices in a single place. The free tool provides an instant picture of global market performance, currency strength and exchange opening and closing times.
Using data from Quandl, Market Health allows users to take a macro look at global markets and indices including the Dow Jones, S&P 500, FTSE 100 and DAX 30 to help formulate and deliver on trading strategies.
Split between three main viewpoints, users can switch between world overview, stock exchange open times and index performance.
The global view combines exchange opening times and currency performance, presented on a world map. The map, displayed as a heatmap, shows currency strength against a base currency.