Closing post
Time to wrap up.
The last full trading week of the year has ended on a poor note in London. The FTSE 100 share index lost 2.6% this week, its biggest weekly loss since October 2023.
Fears of a US government shutdown weighed on European markets, along with concerns that central banks may not cut interest rates as fast as hoped.
Trade war fears also grew, after US president-elect Donald Trump warned the EU that it will face trade tariffs on its exports to the US unless its member states buy more American oil and gas.
UK borrowing in November fell to a three-year low, helped by falling debt repayment costs and higher taxes.
The data was seen as an early Christmas present for Rachel Reeves. However, economists are warning that the chancellor’s headroom is being squeezed.
UK retail sales rose by less than expected last month, suggesting consumers remained cautious.
Millions of last-minute Christmas shoppers are expected to spend £3bn over what has been called Super Weekend, with retailers eager to make up lost ground after a “shaky start” to the festive sales season.
Boohoo shareholders have rejected efforts by Sports Direct founder Mike Ashley to get himself appointed to the online fashion firm’s board.
Goodnight (and good luck getting ready for Christmas). GW
FTSE 100 posts biggest one-week fall in over a year
Despite a late mini-recovery, the UK’s FTSE 100 has indeed posted its worst weekly fall in over a year.
The index of blue-chip shares listed in London has recorded a 2.6% drop this week, the biggest one-week decline since October 2023.
Anxiety that central bankers won’t cut interest rates as fast as hoped in 2025, plus concerns that UK inflation is rising as the economy stagnates, weighed on the City this week.
Today, the FTSE 100 lost almost 21 points or 0.26% to end at 8,084 points, with other European markets also lower.
⚠️ EUROPE'S STOXX 600 DOWN 0.8%
— PiQ (@PiQSuite) December 20, 2024
**BRITAIN'S FTSE 100 DOWN 0.2%
**GERMANY'S DAX DOWN 0.3%
**FRANCE'S CAC 40 DOWN 0.1%; SPAIN'S IBEX UP 0.4%
**EURO STOXX INDEX DOWN 0.1%; EURO ZONE BLUE CHIPS DOWN 0.2%
Markets remain worried about the risk of a US government shutdown, after the House of Representatives rejected a Donald Trump-backed budget package:
Trump has posted that he wants any shutdown to happen now, while Joe Biden is president, saying:
If there is going to be a shutdown of government, let it begin now, under the Biden Administration, not after January 20th, under “TRUMP.” This is a Biden problem to solve, but if Republicans can help solve it, they will!
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