The FTSE 100 pulled back from record highs on Friday as precious metals miners and banks weighed on the index.
London’s leading index was fairly stable, and losses were minor compared to the recent run-up in stocks. The FTSE 100 was trading down 0.15% at the time of writing.
“The FTSE 100 was stuck in the mud as the rest of Europe ploughed ahead at the end of the trading week,” said Russ Mould, investment director at AJ Bell.
“Strength in consumer stocks and utilities was offset by weakness in miners and healthcare.”
A slow session in London followed a fairly uninspiring close for US stocks that closed marginally lower overnight.
“Hardly major moves – the S&P 500 slipped nearly a third of a percent, while the Nasdaq was barely lower at –0.08% with Nvidia holding up the index with a gain of 1.83% after the US government gave approval to ship chips to the UAE, while Meta gained as it is considering creating a dedicated TV app,” said Saxo UK Investor Strategist, Neil Wilson.
Precious metals miners Fresnillo and Endeavour Mining suffered a rare bout of profit-taking as gold pulled back from record highs overnight.
“Gold steadied on Friday, consolidating after breaking above the USD 4,000 threshold for the first time earlier in the week,” said Joseph Dahrieh, Managing Principal at Tickmill.
“The metal remains on track for an eighth consecutive weekly gain, underpinned by expectations of further Federal Reserve rate cuts and lingering global uncertainties.
“Profit-taking and easing geopolitical tensions in the Middle East contributed to a pause in momentum. Israel ratified the first phase of a ceasefire deal with Hamas, which includes a partial military withdrawal from Gaza and the release of hostages within days, although sporadic airstrikes continued.”
Fresnillo lost 3.7%, and Endeavour was the FTSE 100 top faller, down 3.8%.
The housebuilders were marginally positive despite a dire warning from brickmaker Ibstock about slowing demand amid economic uncertainty. Barratt Redrow and Persimmon were both higher by around 0.3%.
The Ibstock CEO said, “headwinds are impacting momentum in our markets in the latter part of the year”. Ibstock shares were 8% weaker.
Sage Group was the top FTSE 100 riser as the stock broke out of a tight range held since early August.