Friday, October 25 17:19:06
London's blue chip index inched higher into the close today, as traders pondered whether to buy into a market near multi-year highs or take profits on a sluggish recovery in earnings.
The FTSE 100 was up 3.61 points at 6,716.79, just 1.8 percent off 13-year highs hit back in May. The index slumped in June but has since climbed almost all the way back as concern over an imminent withdrawal of monetary stimulus, a big driver for equities, has faded.
Volumes were anaemic, just 50 percent of their 90-day daily average, suggesting many investors were staying out of the market.
Valuations are above their 10-year average. On a 12-month forward price-to-earnings ratio, they have risen 16 percent since mid-June to 12.6 times, according to Thomson Reuters Datastream, potentially curbing the traditional end-of-year rally. (Reuters)