Rising interest rates could dampen strong FTSE 100

Despite the prospect of a consumer-led US slowdown and the tightening of global monetary conditions, the FTSE 100 endured a volatile few months before reaching its recent five-year high. Heavy exposure in the London market to energy and mining stocks led to a good deal of volatility. These sectors have struggled on the back of slowing global growth causing less demand for commodities. However, UK growth in the second quarter was above its long-term trend (+0.8% on the previous quarter and +2.6% on the previous year). This was driven chiefly by the service sector as retailers and the leisu...