The FTSE 100 surged to a high not seen since 14 years ago but dropped while on the home stretch towards a new record.
Stocks were bullish at the outset on expectations that financial regulators would continue bond purchases to prop the global economy for the foreseeable future, with investors hoping the European Central Bank will make a decision on low pace of price hikes in June and Mark Carney, governor of Bank of England, saying there is no chance of an early hike of interest rate in UK.
However, signs that the economy was weaker, especially below-expectation Eurozone growth data and disappointing US retail sales and consumer sentiment reports, had a slight negative impact on the stocks. The persistent mayhem in Ukraine, with Moscow still threatening to cut gas shipments, exerted some toll on markets, the Guardian reports.
The FTSE 100 closed at 6855.81 on Friday, soaring 14.92 points for the day and adding slightly over 41 points for the entire week. The FTSE All-Share Index tumbled 0.1% on Friday as Ireland’s ISEQ Index lost 0.3%.
The index’s worst performer for the day was Coca-Cola Hellenic Bottling Company, going down to 13.81 pounds after announcing a first quarter loss of 35.8 million euros that surpassed expectations.
“Some are surely thinking that yesterday’s selloff was way overdone and the market is unwise to panic over one poor GDP print out of the euro zone. After a fall of that magnitude that’s what typically happens in the following treading days,” strategist Michael Ingram of London-based BGC Brokers LP told Bloomberg.
Bloomberg found that the amount of shares exchanged in the FTSE 100 was 32% above the average for the last 30 days.
Morrison Supermarkets Plc surged 3.8% to 212 pence after reports appearing on the Daily Mail suggested a private-equity consortium may seek to acquire the grocery chain.
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