The FTSE 100 is building a base just beneath all time record highs and Wednesday’s session saw early gains fade with the index trading flat.
In a session spent in a tight trading range of just 20 points, the FTSE 100 was up 5 points at 7,856 at the time of writing.
“After a strong start to the year for UK stocks amid better-than-expected corporate results from retailers and signs of falling inflation, the FTSE 100 has taken a breather over the past few days,” said Russ Mould, investment director at AJ Bell.
“Importantly for investors, the FTSE hasn’t given up the year-to-date gains, merely staying firm, with investors waiting for the next nuggets of information on inflation and interest rate expectations before plotting their next move.”
“It’s a similar situation in the US where the S&P 500 enjoyed a jump in the first two weeks of the year and has now lost momentum.”
Ocado was the FTSE 100’s top gainer on Wednesday, up over 6%, following a bruising session on Tuesday that wiped nearly 10% off the online retailer’s value.
Burberry gained 2% after the luxury fashion brand sales excluding mainland China increased 11% in the third quarter.
Gains in cyclical sectors such as mining and financials helped offset losses in defensive the pharma and telecoms sectors.