The FTSE 100 was slightly weaker on Friday as investors battened down the hatches ahead of key trade deadlines next week.
London’s leading index was trading down 0.3% at the time of writing. With US cash equity markets closed for the Independence Day holiday, trading volumes were slightly lower on Friday.
“Optimism is evaporating at the end of the week, as the US tariff deadline looms and the signs are that many countries will face higher duties than expected,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“There’s a distinct lack of Friday fizz for the FTSE 100, as investors mull repercussions for the global economy. Investors are also assessing the implications of the passing of Trump’s big tax cut bill which will add to the mountain of US debt.”
The nervousness in Europe was evident in the failure of major indices to track US stocks higher overnight after an encouraging Non-Farm Payrolls reading.
Any weakness in the FTSE 100 this week has been met by a strong US session, which has fueled a recovery in afternoon trade. This will be absent on Friday.
Underscoring a risk-averse tone to trade on Friday, investors bought into defensive sectors such as telecoms and shunned those with cyclical attributes.
“Vodafone, Sainsbury’s and BT were among the top risers on the FTSE 100, but their strength was not enough to offset weakness from the mining sector,” said Dan Coatsworth, investment analyst at AJ Bell.
UK housebuilders trade negatively again after peer MJ Gleeson said the ‘housing market lacks confidence’. Persimmon was down 1.7%, and Barratts gave up 2%. Housebuilders have been among the worst performers this week after Nationwide released data showing average house prices fell in June.
Mondi was the FTSE 100 top faller with a loss of 2%.