FTSE 100 futures edging lower this morning

Last week the FTSE 100 backed further away from the record it had set the week before, when it topped out at 8,474. The index dropped back to a low at 8,263 on Friday, but managed to recover modestly into the weekly close. The index still set a 21 point lower close, at 8,317. The index is not open today due to the Bank holiday here in the UK. The FTSE 100 futures are trading though and have edged lower this morning from a high around 8,330, back towards 8,300 ahead of the European opening. The higher than forecast UK CPI and RPI data reports from a couple of weeks ago are still weighing on the outlook for a UK rate cut next month. There is now also an added layer of uncertainty from the recently announced UK July 4 election. To be honest though, the outcome of that event is a foregone conclusion right now. It really depends upon how the markets continue to digest the prospect of a Labour government returning to power for the first time in 14 years.