A FEELING of quiet disappointment pervaded the British equity market despite another all time closing high for the FTSE 100 index. The leading index ended 11.0 firmer at 4,053.1, having just failed to penetrate the intraday record of 4,063.2 reached on Tuesday.
London's reluctance to push through its previous intra day high came in the wake of general disappointment at Wall Street's failure yesterday to register any further progress after its recent record highs.
The Dow Jones Industrial Average was generally in negative ground in early trading yesterday, but was seen to be fighting hard to rally an hour after London closed.
There were no real economic forces affecting the British equity market in either direction yesterday. But there was a frisson of excitement in the US in the wake of the August trade deficit which at 810.8 billion (£6.75 billion), came in worse than the consensus forecast of less than 810 billion.
That news affected US Treasury bonds and brought some downside pressure on gilts, which slipped back to end the session sharply lower on balance. Reports that Mr Tim Congdon, one of the "six wise men" advising the Chancellor, had recommended a one point rise in base rates had an adverse impact.
Over the week, the 100 index has risen 25.0, the Mid 250 index 6.3 and the Small Cap 14.94. In percentage terms, the SmallCap marginally outpaced the FTSE 100 on the week.
