London’s FTSE 100 changed little on Friday, after hitting an over-two-week high hit in the previous session, as heavyweight energy shares limited broader declines.
The blue-chip FTSE 100 was marginally down, while the mid-cap FTSE 250 fell 0.2%.
Both indexes are, however, set for their second straight week of gains.
Most major sectors traded in the red with industrial metal miners dropping 1.1% to the bottom of the sectoral charts, as a stronger dollar dented prices of most base metals.
On the bright side, energy shares were up 1% as oil prices steadied at their two-month high touched on Thursday.
Trading volumes were thin in the week shortened by Wednesday’s New Year holiday.
Data from the British Retail Consortium showed the number of people visiting shops last year fell by 2.2%, the biggest drop since 2021.
Footfall during the final quarter, which includes the holiday shopping season, also dropped compared with 2023.
“It looks set to be a highly challenging year ahead for retailers who will be faced with the double whammy of shoppers focused on getting value for money, while their own costs rise due to the increase in taxes,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
FTSE 100 hits two-week high in new year trade
Some uncertainty prevailed as investors gauge the potential inflationary impact of UK Finance Minister Rachel Reeves’ October budget, which could affect the Bank of England’s existing gradual approach to monetary policy easing.
The central bank delivered two cuts totalling 50 basis points in 2024, and markets have priced in a reduction of nearly 60 bps this year.
Donald Trump’s return to the US White House with his potential tariff policies added to the jitters.
The FTSE 100 ended 2024 as its fourth consecutive year of gains, while the FTSE 250 logged its second.
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