FTSE 100 reverses gains as week of ‘profit-taking’ takes toll on European stocks

London’s FTSE 100 fell 98.73 points, or 1.19%, to end the week at 8,229.99.

Global stock markets tumbled on Friday (Yui Mok/ PA) (PA Wire)

Global stock markets tumbled on Friday, with the UK’s top index wiping out gains from the previous day after the dust settled on a week dominated by central bank activity.

London’s FTSE 100 fell 98.73 points, or 1.19%, to end the week at 8,229.99.

Almost every stock on the blue-chip index lost ground on Friday, with some of the biggest losses coming from retailers including Frasers Group, Next and Burberry.

The fall came despite official data showing that retail sales rose by 1% in August, with summer discounts and warmer weather boosting clothes stores and supermarkets.

Nonetheless, end of week profit-taking took its toll on US and European stock indices on Friday

Axel Rudolph, IG

Nonetheless, separate data from GfK showed consumer confidence has dropped in September, with people holding a gloomier outlook on their finances and the broader economy.

Axel Rudolph, senior technical analyst for IG, said: “Several equity indices such as the Dow, S&P 500 and German Dax hit new record highs this week following the Fed’s first rate cut in four years.

“Nonetheless, end of week profit-taking took its toll on US and European stock indices on Friday.

“In the UK an unexpected rise in retail sales didn’t prevent the FTSE 100 from dropping by over a percentage point.”

In Paris, the Cac 40 dropped 1.51% and in Frankfurt, the Dax fell 1.43%.

Over in New York, trading started on the back foot with the S&P 500 down 0.3% and Dow Jones down 0.1% by the time European markets closed.

The pound was up about 0.1% against the US dollar at 1.33, and up 0.2% against the euro at 1.192.

In company news, shares in Investec dipped despite the banking group upgrading its profit outlook for the half-year after seeing a post-general election increase in activity.

Investec said revenue growth had benefited from a more positive economic outlook following the UK general election, and increasing certainty on global interest rate cuts. Its share price closed 4.6% lower.

The biggest risers on the FTSE 100 were: National Grid, up 13p to 1,036p; Rolls-Royce, up 1.2p to 526.2p; Hargreaves Lansdown, up 2.5p to 1,110.5p; Phoenix Group, up 1p to 549p; and Marks & Spencer, up 0.3p to 369.5p.

The biggest fallers on the FTSE 100 were: Spirax, down 360p to 7,160p; Frasers, down 39.5p to 842.5p; Next, down 414p to 9,976p; Melrose Industries, down 18.4p to 466.1p; and Croda, down 154p to 3,911p.