The markets have found it tough to make tangible progress since early June and that trend continued on Friday.
“The FTSE 100 was down 0.3% to 6,030.83, flirting with the 6,000 level for the first time since May and bringing to a close a week which has seen investor optimism fade as the global battle with Covid-19 apparently has no end in sight,” says AJ Bell investment director Russ Mould.
“US markets have held up better than most but even here the S&P 500 marked its most recent high on 8 June.
“The situation with coronavirus feels less like a second wave and more like aftershocks from the initial earthquake caused by the pandemic.
“These fresh, often localised outbreaks, in countries which apparently had the virus under control likely won’t create the kind of disruption seen when lockdown measures were at their height, but will still hamper any economic recovery.
“Next week could help set the course for the markets over the remainder of the summer as the US earnings season kicks off in earnest, though perhaps equally as influential will be any sign that the country is getting infection rates under control.
“Having moved above $1,800 per ounce for the first time in nine years, gold prices have taken a step back but the precious metal remains within sight of the record high of $1,920 per ounce marked in 2011. Oil prices are lower with the US benchmark WTI now firmly below $40 per barrel.”