London’s top-flight headed for a quieter end to a volatile week today as it drifted lower after sharp gains in the previous session.
The FTSE 100 Index slipped 14.5 points to 6177.5 with activity calmer after a rollercoaster ride in recent days sparked by fears over a Chinese slowdown.
It had seen a 4.7% fall on Monday, a 3.1% rise on Tuesday, and a 1.7% fall on Wednesday, followed by a 3.6% rise on Thursday.
Yet in spite of all the dramatic developments its level, as the week drew to an end, was only a little below the closing level of 6187.6 seen last Friday.
However earlier falls in the index mean it is now trading around 600 points lower than levels seen around the start of the month.
Sentiment has improved in the last couple of days amid an interest rate cut in China, upgraded second quarter growth in the US and signs that the Federal Reserve will not hike US interest rates next month.
China’s Shanghai Composite Index rose again overnight but it was not enough to drive gains in the FTSE 100 as the index struggled for direction.
Meanwhile official figures in the UK confirmed that growth accelerated to 0.7% in the second quarter.
Net trade made the biggest contribution, of one percentage point, as exports rose 3.9% and import growth slowed. But economists said this was unlikely to last as the strength of the pound weighs on overseas sales.
Household spending rose by 0.7%, down from 0.9%, according to the Office for National Statistics (ONS) data, but it was still the 16th consecutive quarter of growth in this category.
Sterling slipped against the US dollar at a little below 1.54 and against the euro at just over 1.36.
In London shares, oil firms were among those heading higher as the price of a barrel of Brent crude hovered around 47 US dollars after the recent market turmoil saw it plunge to a new six and a half year low below 43 US dollars.
Royal Dutch Shell rose 20p to 1679.5p while exploration firm BG, with which it is to merge, added 15.4p to 977.2p. BP also initially headed higher but later dipped 0.7p to 350.5p.
In the FTSE 250 Index, paving firm Marshalls rose nearly 6% after reporting a 48% rise in half-year pre-tax profits to £20.8 million.
The West Yorkshire-based firm said that if positive market conditions continued through the second half, full-year trading was likely to be above original expectations. Shares rose 17.8p to 334.3p.
Recommended for you
