FTSE flat at close as Wall Street starts second half of 2022 in weak fashion

London’s top index of firms finished virtually flat at the end of a choppy session which saw the FTSE spend most of the day lower.

Nevertheless, it recuperated almost all of its losses despite a slump in sentiment in the US as traders continued to worry over the economic slowdown.

The FTSE 100 ended the day down 0.63 points, or 0.01%, at 7,168.65.

“The losses of the first half do not seem to have created any immediate desire to buy the dip, it seems,” said Chris Beauchamp, chief market analyst at IG.

“An initial recovery for US markets from the lows of the morning has given way to more losses, and even the prospect of a long weekend in the US hasn’t tempted the dip buyers in.”

Elsewhere in Europe, the improvement in trading was enough to help the other main markets into the green.

The German Dax increased by 0.23% by the end of the session, while the French Cac increased by 0.14%.

On Wall Street, equities started July as they finished last month as growth fears took over from inflation worries.

Meanwhile, sterling rebounded against the dollar. The pound was up 0.46% against the dollar at 1.205 and was up 0.22% against the euro at 1.157 at the close.

The price of oil lifted back slightly after tumbling as OPEC+ confirmed it would only hike output next month as much as previously announced despite tight global supplies. Brent crude increased by 1.62% to 110.8 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were Ocado, up 32.8p at 814p, SSE, up 61.5p at 1,677.5p, RollsRoyce, up 3.13p at 86.08p, Melrose, up 5p at 154.7p, and Compass Group, up 48p at 1,728p.

The biggest fallers of the day were Harbour Energy, down 31.2p at 332.6p, Glencore, down 18.75p at 426.35p, Anglo American, down 115.5p at 2,821.5p, Endeavour Mining, down 63p at 1,639p, and Abrdn, down 5.35p at 154.5p.

“Even the prospect of a long weekend in the US hasn’t tempted the dip buyers in