The FTSE 100 experienced a slight decline, retreating from record highs due to anxieties surrounding the Federal Reserve’s independence, anticipated US inflation figures, upcoming UK GDP data, and pressure on bank stocks following comments from the US President. Gold miners, however, continued to perform well, offsetting some of the losses.
- FTSE 100 slipped 0.1% to 10,110.
- Concerns arose over the Federal Reserve’s independence due to Justice Department subpoenas.
- US President Trump called for a one-year cap on credit card interest rates at 10%, negatively impacting bank shares.
- Gold miners, Fresnillo (+5.6%) and Endeavour (+1.8%), were top performers due to rising gold prices.
- UK employers cut back hiring in December amid rising costs and weak sentiment after Labour’s tax-raising budget.
The market’s performance suggests a period of caution influenced by both domestic and international factors. Concerns about central bank autonomy and potential policy interventions, alongside upcoming economic data releases, are contributing to investor unease. While certain sectors like gold mining are showing strength, broader economic uncertainties, particularly regarding hiring trends, could weigh on future performance.