On Wednesday the FTSE was trading cautiously and was slightly higher earlier on the day at 7,631.185.
The FTSE 250 fell by 0.3% to 17,911.22 and markets in Frankfurt and Paris traded lower.
Shell and BP was higher on the FTSE as Israel declaring war on Hamas helped oil price rise, but concerns remain in place over supply trading routes which could be affected.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said, “The surge of optimism, fuelled by hopes the Fed will go easier with its interest rate policies and buoyed by expectations of fresh stimulus in China, appears to have plateaued.
“A little more caution is returning, as investors look ahead to tomorrow’s snapshot of inflation in the United States.”
She added, “Investors are highly sensitive to data and if US inflation shows any signs of tripping up in its downwards path, it is set to be unsettling and could upset expectations of a more dovish stance from the Fed.”