The London market scraped out a tiny gain tonight as mixed data from across the Atlantic failed to move investors who remained cautious ahead of the upcoming US elections.
The benchmark FTSE 100 Index traded in a 40-point range all day and in weak volumes, suggesting fund managers remain onlookers in markets which have struggled for direction since central banks stepped in to support the financial system in early September.
The Footsie swung into positive territory after US jobs numbers beat expectations with employers adding 171,000 people to their payrolls last month.
But the combination of a sharp rally in equities on Thursday, a weak investment outlook and still high unemployment in the world’s biggest economy saw momentum capped. The index ended the day just 6.63 points better off at 5,868.55.
David Madden, market analyst at IG, said: “The initial euphoria of a much better-than-expected [US jobs] number pushed the FTSE to a ten-day high, but the market didn’t have the legs to sustain this.”
Supermarket chain Morrisons was in the red ahead of its third-quarter update next week as analysts expect figures to reveal sales declines widening to 2 per cent as it loses out amid intense competition in the sector. Shares in the UK’s fourth biggest grocer fell 3.7p to 263.8p.
Drugs giant GlaxoSmithKline was enduring another painful session following a disappointing trading update earlier this week. With a broker downgrade adding to its woes, it fell 2 per cent or 26p to 1,361.5p.
Currys and PC World parent Dixons Retail continued to benefit from the downfall of Comet, adding a further 11 per cent or 2.5p to 25.8p after a 14 per cent rise the previous day.
NEW YORK: Wall Street ended an unusual storm-shortened trading week with a sell-off tonight, as major indices erased early gains sparked by a stronger-than-expected payrolls report.
The Dow Jones industrial average slid 139.46 points, or 1.05 per cent, to end at 13,093.16 while the Standard & Poor’s 500 Index tumbled 13.39 points, or 0.94 per cent, to finish at 1,414.20. The Nasdaq Composite Index dropped 37.93 points, or 1.26 pecent, to close at 2,982.13.