The FTSE 100 index has withstood an overall downturn in the markets, as traders use the lull between Christmas and New Year to cash in on profits.
The dollar rose to record highs in the run-up to Christmas, but slipped down to a two-week low against the Yen on Thursday.
The yield on 10-year US Treasury notes followed the dollar down to a two-week low after weaker-than-expected economic data begun to have an effect. Earlier this month saw the bonds rise to over two-year highs, up 2.6 percent.
“We had a huge sell-off in the U.S. bond market since the U.S. election…so perhaps we’ve seen the crescendo of selling, at least initially,” said MUFG currency economist Lee Hardman.
European stocks slipped slightly as investors started to sell-off shares ahead of the new year. Europe’s index of the leading 300 shares fell 0.2 percent, with banking stocks leading the tumble down 0.8 percent.
Germany’s DAX was also off 0.2 percent. The FTSE 100 stayed strong however, falling just 0.1 percent from Tuesday’s record closing high after being boosted by the big mining companies.
“European stock markets are slightly down after weaker than expected U.S. data yesterday weighed on global sentiment and sent the dollar down,” Action Economics analysts wrote in a note to clients.
“Renewed risk aversion is also weighing on European stocks, although losses have been relatively muted so far and in the case of the DAX not managed to seriously dent the year-end rally.”