The FTSE 100 ended 2021 with a whimper rather than a roar after it closed 18 points lower at 7,384.54.
“It has been a quiet session across markets today as the final session of the year draws to a close in London,” said Chris Beauchamp, of spread betting firm IG.
“After playing catch-up with US markets earlier in the week, the FTSE 100 has edged lower in recent sessions.
“Indices generally have struggled for direction as the year winds down but will benefit from Chinese PMIs and the monthly US job numbers next week, providing some clues on the health of the global economy.
“Santa did indeed arrive for markets over the festive period, with equities rallying in the week between Christmas and New Year.”
Overall, it hasn’t been a terrible year for the UK blue-chip benchmark, which has advanced 14% in the last 12 months as it continued to recover from its Covid induced lows of 2020.
Set against the helium-filled performances of the Nasdaq (up 27.5%) and the Dow Jones (ahead 19%), the Footsie’s ascent looks less impressive.
The stock markets of France and Germany performed better too.
So, what lies in store? Well, the Covid story hasn’t run its course. And, well, inflation and evolving changes to monetary policy to combat rising prices, appear to be the main issues as we move into the New Year.
Looking ahead, IG stock market guru Beauchamp remains upbeat: “Overall, it still seems sensible to expect further gains for stocks, but with perhaps less of the exuberance we saw in 2021.”
10.35 am: Grey day for the City and the London market
- The UK blue-chip benchmark off 21 points at 7,382.47
- Volumes extremely low
- Wall Street predicted make start in the red
The FTSE 100 appears to be reflective of the grey pall hanging over the Square Mile and Canary Wharf (pictured).
At the moment US stock futures are indicating that Wall Street will end 2021 on a bum note too.
The most heavily traded shares by value on the Footsie have been in the natural resources sector – Glencore and Royal Dutch Shell.
However, that’s not saying much given the lacklustre activity.
8.30 am: The Footsie opens up in the red
The FTSE 100 opened the final trading session of 2021 in the red as it took its cue from Wall Street.
The index fell 25 points to 7,378.13 amid worries over the spread of the Omicron Covid variant (and its economic impact) that continued to dampen spirits in the Square Mile.
Even a rare ‘up’ day for the embattled and beleaguered Chinese tech sector couldn’t sway London’s price setters.
On the market, the early action revolved around Bunzl, the distribution group, with the shares marked 2.6% lower in the first 30 minutes of trade.
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