Global markets ended the week on a disappointing note and London was no exception.
Stock markets have continued their drift lower, with US data providing further reason for investors to trim positions.
Data released today showed that U.S. producer prices held steady in August, with inflation remaining low.
Fed officials consider employment and inflation key as they make interest-rate decisions and while this hardly warrants a rate move by itself, it has been filed away with other data that supports the first rate rise since 2006.
In the US, the Dow Jones opened Friday’s session about 60 points lower at 16,280 while the S&P 500 started around 5 points, about 0.3%, down at 1,946 and the Nasdaq gave up a similar amount.
Back home, the FTSE 100 ended the day around 40 points, or 0.6% lower to 6,117 but gained 1.4% over the course of a volatile week.
Chris Beaucham at IG said: “While the FTSE 100 has ended fractionally higher for the week, the failure to make progress indicates how buying pressure has generally dissipated as we head towards the crucial Fed decision next Thursday.”
The price of a barrel of Brent crude fell 1.2% to US$48.3 and US light crude was 1.7% off at US$45.1.
The response from the oil giants was mixed. BP (LON:BP.) eased 1.8p to 333p, but Royal Dutch Shell (LON:RDSB) lifted 2p to 1,626p and BG Group (LON:BG.) inflated 0.9p to 990p.
In corporate news, JD Wetherspoon (LON:JDW) lost early gains to stand 4p down at 716p as the pub group served up lower annual profits and reduced pub openings this year.
Regus (LON:RGU) was higher after reports suggested it may be the subject of bid interest from private equity suitors.
Mark Dixon, chief executive, recently rejected a £3bn bid approach from a major private equity player, according to the Daily Mail. Shares rose 2.6% to 302p.
Elsewhere, carpet maker Victoria (LON:VCP) has bought UK carpet underlay manufacturer Interfloor Group for £65mln and has raised £30mln through the placing of 2.5mln shares at 1,230p per share. Shares rose 12% to 1,395p.
In small caps, Rosslyn Data Technologies (LON:RDT) has won a significant new contract with one of the world's largest mining companies worth around £400,000. Shares jumped 15% to 17.8p.
Meanwhile, Botswana Diamonds (LON:BOD) eased 1.8% to 0.8p as it said drilling has started at its Orapa site and is scheduled to finish by the end of the month.