FTSE Steadies Amid Economic Shifts and Retail Challenges

The FTSE 100 remained stable after a significant rise, balancing energy share gains and sectoral declines. Thin trading followed a New Year holiday, with retail footfall dropping and inflationary concerns looming due to budget implications and potential U.S. tariff policies.

The FTSE 100 showed minimal movement on Friday, following an impressive rise earlier in the week, primarily restricted by losses in heavyweight energy stocks. Despite the marginal dip, the index, along with the FTSE 250, aimed for a second consecutive week of gains.

Major sectors experienced declines, with industrial metal miners falling by 1.1% due to a strong dollar affecting base metal prices. However, energy shares provided some upward momentum, gaining 1% as oil prices stabilized, marking a two-month peak hit the previous day. This week's trading volume was low due to a holiday on Wednesday.

Retail footfall in the UK dropped significantly, facing a challenging outlook with increasing taxes and cost pressures, according to the British Retail Consortium. Investors watched closely as potential inflationary effects of UK Finance Minister Rachel Reeves' budget unfolded, potentially influencing the Bank of England's monetary policy and creating market jitters alongside Donald Trump's tariff prospects.

(With inputs from agencies.)