London’s FTSE 100 is set to start Thursday on the back foot, falling back below 7,000.
Record breaking rallies are fading as the market is seemingly running out of steam.
Oil prices have backed off following reports of OPEC production volumes and a build in US inventory – meanwhile expectations of an American interest rate rise are growing.
In Asia, Chinese trade data was weaker – exports down around 10%.
CMC Markets Analyst, Michael Hewson said, “It would appear that rising inflation expectations, along with apprehension about the forthcoming earnings season is starting to gnaw away at sentiment, though markets in Europe aren’t being helped by the febrile atmosphere swirling around Europe as a result of the UK’s summer Brexit vote”.