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Energy Shares Boost FTSE 100; Crest Nicholson Leads Rout among Housebuilders

  • UK housing sector set for biggest monthly drop since Sept
  • Crest Nicholson plunges on profit warning
  • FTSE 100 up 0.2%, FTSE 250 off 0.3%

Aug 21 (Reuters) - The UK's FTSE 100 index rebounded from six-week lows on Monday, helped by a rise in energy stocks, but midcap stocks slipped as Crest Nicholson led the decline among housebuilders that also fell on disappointing industry data.

The blue-chip FTSE 100 index climbed 0.2%, set to snap six straight days of declines. The midcap FTSE 250 shed 0.3%, with the housing sector index sliding 2.8%.

Data from website Rightmove showed asking prices for homes in Britain fell sharply this month, as rising mortgage costs prompted sellers to lower their expectations of what they can get for their properties.

It was the biggest monthly fall for August since 2018 and twice as steep as the usual summertime slide.

Crest Nicholson tumbled 10.5% to the bottom of the midcap index after the housebuilder lowered its annual profit expectations.

"The latest Rightmove House price survey saw asking prices cut by 1.9% in August... the prospect of another rate hike next month is also likely to be affecting confidence," said Michael Hewson, chief market analyst at CMC Markets.

Both main FTSE indexes have underperformed the broader Europe STOXX 600 index (.STOXX) so far this year as an early bounce in commodity prices and reopening hopes in China faded, with the Bank of England's tough stance on inflation also hurting British stocks.

Oil and gas stocks added 1.3% on a rebound in oil prices as global supply tightened with lower exports from Saudi Arabia and Russia.

Global markets weren't enthused by Beijing's disappointingly frugal stimulus steps after China's central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unmoved.

Focus will now shift to the Jackson Hole Symposium later in the week, where major central bankers will share their views on the trajectory of global monetary policy.

Reporting by Shreyashi Sanyal in Bengaluru; Editing by Rashmi Aich and Dhanya Ann Thoppil

Source: Reuters


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