Features of GEMFOREX’ FTSE 100 (UK100)

  • You can trade in the same way as Forex
  • Adopts MetaTrader 4 (MT 4)
  • No rejection and contract refusal
  • Absolutely No Hidden Markup
  • Realizes 99.79% of commitment within 0.78 seconds
  • The shortest 30 seconds account opening & Easy, speedy until start of trading

And more…
GEMFOREX continues to pursue a comfortable environment of traders, and FTSE 100 (UK100) can be used with confidence by beginners and those experienced people in Forex under the MT 4 environment familiar to FTSE 100 (UK100).

What is FTSE 100 (UK 100)

Among the companies listed on the London market, one of the three major stock exchanges, the FTSE 100 (UK 100) is the share index composed of the top 100 stocks. FTSE has four initials of Financial Times Stock Exchange. It is a stock index that is constantly drawing attention from all over the world as a stock index that has a remarkable influence on the world economy.

FTSE 100 constituent stocks

In the constituents of FTSE 100, the financial sector accounts for approximately 22% of the total, followed by 20% of the living-related sector, followed by energy, services and healthcare. The top ten stocks are about 40% of FTSE 100's overall weight. In the information technology sector, which is highly competitive worldwide, it has a weight of 1%.

The highest composition ratio among the constituents of FTSE 100 is HSBC Holdings, the leading financial institution in the UK. British · American · Tobacco, a tobacco related company, Glaxo · SmithKline · and Astra Zeneca, which are global drug companies, are among the top ten companies.

Of the shares listed on the London market, only FTSE 100 covers market capitalization exceeding 85%. In addition, Rolls-Royce, Prudential, Coca-Cola etc. which are well-known in Japan are also companies that are named FTSE 100. There are many brands of famous companies worldwide, with countries with three major markets.

Transition of FTSE 100

FTSE 100 Index

The FTSE 100 index has experienced a massive crash three times in the past 30 years. The first crash occurred in 1987, Black Monday. Black Monday triggered the fact that the trade deficit had grown beyond expectation, that the rate hike was anticipated to avoid extreme dollar depreciation, and that many selling orders were issued in computer program buying and selling. The FTSE 100 index also plunged 32% down in 3 weeks and has been plummeting.

After that, it took 13 years to rapid growth and has been rising. Especially since the end of the 20th century, with the wide spread of the Internet, the IT bubble has caused a remarkable rise. In 2001, the collapse of the IT bubble will cause a second crash. In addition, the simultaneous multiple terrorist attacks occurred at the same time, and the global situation became unstable, and the stock index wobbled.

And at the time of the new Lehman shock, a collapse has been occurring which records a decline of 35% in half a year. After that, there is economic recovery, and it has been growing. Although crash has occurred several times like this, each cause is different. It is assumed that there is a high possibility that the crash will continue in the future.

※Image quotation:Wikipedia

FTSE 100 Future Outlook

In Britain, the policy rate was raised for the first time in ten years, but the British pound declined due to the fact that the rate of growth was small and the next rate hike was ahead for the time being, while the FTSE 100 index showed a strong pace. It is on the rise trend. Many companies with high revenues from exports are among the constituents of the FTSE 100 index, which is characterized by a favorable impression of the pound.

In the UK, in 2016 the EU withdrawal was decided by a referendum. It was FTSE 100 which was thought to be damaged by withdrawal from the EU, but in fact it showed a steady movement such as recording a 14% increase. On the other hand, many EU companies are planning to contract transactions with English companies following the withdrawal from the EU, the concerns remain. As for the economy, the trend is slowing down, and the wage accompanying the rise in the inflation rate is also declining.

Considering that the UK economy has contributed greatly to personal consumption, it is also assumed that FTSE 100 will not lead to a big rise. Meanwhile, there are many companies in FTSE 100 companies that are improving their business performance globally. Because growth is expected in the future, there are no factors that will cause a big decline unless there is an emergency. By the way FTSE 100 is also a popular stock index for CFD. The exchange of stocks is done once in the quarter, you can invest in leading companies active in the world, the risk of exchange rate is small, and the equivalent dividend can be obtained.

Correlation between FTSE 100 and other stock indices

Despite announcing its withdrawal from the EU, the UK still has a strong connection with European countries. FTSE 100 is also regarded as a representative stock index in Europe, and it also features similar movements to the European equity index 50, German stock index DAX and France CAC 40. Since it is inversely correlated with euro and pound movements, there is also a feature that the movement of FTSE 100 is easy to predict when looking at the movement of the European currency.

It is also strongly linked to the Japanese economy and the US economy, so it is also influenced by the movements of the NY Dow average stock price and the Nikkei Stock Average. When the American economy and the Japanese economy fail, the UK economy is also likely to slow down. The price range is great among developed countries, and in Europe it is about the same price as France CAC 40. On the other hand, the relevance to the stock index of emerging countries is lower than the stock index of developed countries.

Since FTSE 100 is one of the world's leading stock indexes, the linkage with stock indices in each country is also growing. In addition to linking to the world economy, the economic situation in the UK is also a factor that greatly affects the price range of FTSE 100. When trading with FTSE 100, it is necessary to pay attention to the movement of the economy with a broad perspective.