The FTSE 100 danced tantalizingly close to its all-time record on Friday, soaring above the 8,400 mark before losing momentum and closing the day slightly in the red.
The London blue-chip index dipped by 3.01 points—a modest 0.04% drop—to settle at 8,376.63. This late-session slide came after a promising start that saw the index approach its May record high of 8,445.
FTSE 100's Mixed Performance Reflects Market Jitters
The day’s market movements were set against a backdrop of mixed reactions from business groups concerning potential Labour plans to introduce a “compressed hours” four-day work week. While some voiced caution, others, like the Trades Union Congress, supported the idea, arguing that flexible working arrangements “make good economic sense.” The uncertainty surrounding these proposals added a layer of tension to the markets, contributing to the FTSE 100's hesitant performance.
European Markets Follow Suit
Across Europe, other major indices mirrored the FTSE's jittery behavior. Frankfurt’s Dax index edged down by 0.03%, while the Cac 40 in Paris saw a slight decline of 0.13%. The broader market sentiment appeared cautious, with investors weighing economic data and political developments.
US Markets Show Mixed Fortunes
Over in New York, as European markets closed, the S&P 500 managed a modest gain of 0.21%, reflecting a more positive outlooks state side. However, the Dow Jones dipped slightly, down 0.12%, highlighting the ongoing uncertainty and volatility that has characterized global markets in recent weeks.
Pound and Oil Prices Under Pressure
Currency markets also felt the pressure, with the pound trading 0.30% lower against the dollar at 1.3129 and dropping 0.13% against the euro to 1.1872. Meanwhile, Brent Crude Oil futures fell by 1.351% to 78.86 US dollars as markets in London drew to a close.
Housing Market Resurgence Amid Rate Cuts
The latest data from the Bank of England revealed a resurgence in the housing market, with 62,000 mortgages approved for homebuyers in July—the highest since the turbulent days following the mini-budget under former Prime Minister Liz Truss. This up tick in approvals comes as mortgage rates begin to edge down following the Bank of England’s recent 0.25 percentage point cut in the base rate to 5%.