The FTSE 100 dipped on Friday, with US cash markets closed for the Independence Day holiday and no fresh catalysts for UK stocks.
London’s leading index was down 0.33% at the time of writing.
After a strong session yesterday, Friday brought a higher degree of choppiness, with the index opening on the front foot before the gains evaporated and turned to losses.
But given that the FTSE 100 hit its highest level since April yesterday, the pullback looks like nothing more than a bout of profit-taking.
Thursday’s rally was sparked by a strong US jobs figure, easing fears of an interest rate hike that could sap confidence among equity bulls.
“Yesterday’s US jobs data pointed to a softer labour market which has raised hopes that the Fed won’t put up interest rates,” said Dan Coatsworth, head of markets at AJ Bell.
“The shift in rate expectations led to a drop in US Treasury yields, meaning the opportunity on fixed income was slightly diminished and thereby dampening one of the drivers that’s taken money away from gold this year. Investors might have seen this market shift and decided it was time to add back some more gold.”
In London, St James’s Place was the best FTSE 100 performer of the session after UBS increased its price target on the stock.
Financials generally were stronger on Friday, with ICG, Aberdeen, and Lion Finance in the top ten risers.
Consumers facing stocks acted as the main drag on the FTSE 100 index. IHG was the top faller, losing 2.3%. Tesco, Diageo, Unilever and Games Workshop were also lower.