The UK market continues to drift lower with heads turned by the usual summer distractions. Although a neat and simple excuse is to blame a little bit of hot weather and a game of tennis, stock markets look set to lack direction until the summer passes.

The debate surrounding an early entry into the Euro has brought back to the fore the question of a weaker currency, and the possible return of some modest inflation and a return to higher interest rates.

Although a return to the days of "boom and bust" may be unlikely, a familiar picture of a buoyant property market and high consumer spending, coupled with a weak manufacturing sector, is beginning to emerge.

That is a picture that points to higher interest rates, and not lower rates, hence the uncertainty creeping into economic debates.

Of more immediate concern to investors this week is the flotation of Friends Provident.

Friends is one more of those companies that have shed their mutual status over the past few years, and while many have succumbed to take-overs, Friends is taking the more visible route via a stock market float.

Qualifying members are receiving share entitlements though are faced with the question of deciding whether to sell, or buy more shares. Trading begins on Monday, July 9.

We have only an indicative share price range to work from, 210p to 270p, prior to the float and therefore shareholders are required to make decisions partly blind.

The old adage of seeking advice from a professional advisor rings true in this case.

John Pearson - Associate Director

l Gerrard is regulated by the Securities & Futures Authority. Share prices and the income from them can go down as well as up. Readers are advised to seek professional investment opinion before entering into dealings in securities mentioned in this article, which may be unsuitable in their personal circumstances.