FTSE 100 Drifts Lower Amid Summer Lull Fears
The FTSE 100 index closed down 22.56 points on Friday, representing a 0.2% decline at 10,750.11. This mixed day for Europe saw mid-caps posting modest gains, with the FTSE 250 ending up 29.71 points or 0.1% at 24,867.42.
David Morrison, senior analyst at Trade Nation, noted that momentum on London is picking up to the downside, citing a pause in the summer rally that pushed European indices to record highs. The question now is whether this marks the top for some of these indices or if there are more gains to be had after a decent period of profit-taking.
US inflation readings, which came in softer than expected this week, led to a dialling back of Fed rate hike expectations. This has supported equities, but European investors are keeping a close eye on energy prices as the summer edges to its conclusion.