British investors will likely be in wait-and-see mode, hoping that a positive finish Friday can be carried over after a bout of nerves resulted in substantial losses earlier. Dealers said better-than-expected US employment figures and a regional industrial output report on Thursday had reassured markets going through a fresh round of nerves over the outlook for recovery from the global slump.
The FTSE 100 index of leading shares closed on Friday with a gain of 1.52 percent to 4,345.93 points on the day but for the week, the market was down 2.16 percent, reflecting the sustained losses seen earlier. "Markets are still debating how to interpret the most recent economic indicators," Calyon analysts wrote in a noted.
"The two main issues seem to be the precise timing of the expected sustainable recovery and the current value of market prices relative to this expected timetable. "While it is very ambitious to provide solid answers, the mood among investors is hesitant," they said.
Dealers said that without a clear new lead, many investors will likely prefer to sit on the sidelines as the markets slide into the traditional summer holiday lull. No major British economic indicator is expected, giving investors little to trade on.