ondon stocks finished in the red by a fine margin but it failed to take the shine off a strong week.
The FTSE had witnessed a dismal start to July, which saw it slide to its lowest close price since November, but clawed back significant ground amid positivity around potential cooling in inflation.
London-listed commodity stocks had a particularly robust performance in recent days.
The FTSE 100 moved 0.08%, or 5.64 points, lower to finish at 7,434.57.
Elsewhere in Europe, the other main markets were mixed on Friday after even stronger weeks.
Germany’s Dax index was 0.22% lower for the day while the Cac 40 closed up 0.06%.
Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been a somewhat indifferent end to what has been a strong week for European markets, which has seen a good proportion of last week’s losses disappear, as markets price out the likelihood of further aggressive rate hikes.
“The CAC 40 has been one of the best performers this week, with gains of over 3% this week, followed by the DAX and then the FTSE 100, which is up on the week close to 2.5%.
“While last week’s equity market declines came against a concern that the Fed would overtighten into a slowing economy, this week’s inflation data has reinforced the case that deflation might be the bigger concern.”
In the US, the key markets saw modest gains on the opening bell as higher profits at JP Morgan gave the banking sector a boost.
Meanwhile, the pound’s bumper trading spell, which saw it surge to a 15-month high against the dollar, faltered slightly on Friday amid a steadier session across the currency markets.
The pound was down 0.13% to 1.311 US dollars and increased 0.22% to 1.166 euros at market close in London.
In company news, gambling firm 888 tumbled during trading after it ended discussions with FS Gaming Investments over the proposed appointment of a new leadership team.
The William Hill owner said it had “no option” but to terminate talks with the investor because it risked losing licences to operate in the UK, amid a potential review from the Gambling Commission.
Shares in 888 dropped by 25.3p to 79.6p as a result.
Fashion giant Burberry tipped higher after the luxury brand saw its sales spike in recent months following a post-Covid rebound in shoppers in China and strong demand for its classic trench coat.
The British firm saw revenues jump by 18% between April and June, compared to the same period last year, helping to push its shares 24p higher to 2,126p at the close of trading.
ITV shares slipped 0.4p to 68.02p after the broadcasting firm abandoned potential plans to buy Gogglebox and Call The Midwife producer All3Media, less than a month after expressing interest in a deal.
Meanwhile, the price of a barrel of Brent crude oil fell by 1.28% to 80.32 US dollars at the time markets were closing in London.
The biggest risers in the FTSE 100 were Spirax-Sarco, up 315p at 10,445p, London Stock Exchange Group, up 198p at 8,290p, Mondi, up 23.5p at 1,292.5p, Halma, up 39p at 2,244p, and Experian, up 47p at 3,001p.
The biggest fallers of the day were Ocado, down 25.6p at 594.4p, Croda, down 152p at 5,648p, Rolls-Royce, down 3.4p at 145.9p, BP, down 9.2p at 456.45p, and Legal & General, down 3.7p at 223.8p.