World stock markets appear to have run out of steam today after a bumper year for shares, suggesting the City's 'Santa rally' is over.
Having gained 240 points since December 21 the FTSE 100 was effectively becalmed this morning. The blue chip index struggled to gain just 3 more points to 5441, with a measly 33.5 million shares changing hands by 9am. Energy and mining groups were among the fallers, with BG Group down 1.2% and Rio Tinto off around 1%.
The picture was mirrored on other stock markets across Europe. And earlier today Japan's Nikkei ended the year with a 0.86% drop, dragged down by fears that Japan Airlines may file for bankruptcy.
Cameron Peacock, market analyst at IG Markets, predicted that "after yesterday's continued run gains for European equity markets - albeit in rather thin trading conditions - investors in London may well be inclined to start taking money off the table."
Today is the City's last full trading session of 2009, and many traders having already closed their books for the year. On New Year's Eve the London market will only be open until 12.30pm.
It's been a lively year on the stock market, with the FTSE hitting a low of 3460 in early March. But unless something dramatic happens, it will end 2009 around 22% higher than it started it. That would be the best top-line performance of the decade, although not enough to wipe out the 31% plunge we saw in 2008.
