Housing stocks drag FTSE 100 lower amid recession fears

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Housing stocks drag FTSE 100 lower amid recession fears

 Housing stocks drag FTSE 100 lower amid recession fears
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UK Market: The UK stock once again turned lower on Thursday, with the blue-chip FTSE100 index losing over 2%. Housebuilding stocks, including Barratt and Persimmon, pulled the index lower after Nationwide reported that the house price growth has slowed down from 0.9% in May to 0.3% in June. The building society also stated that London was the worst performer in the UK, with its annual price growth plunging from 7.4% in Q1 to 6% in Q2. Additionally, the index reacted negatively to Lloyd’s business barometer, as per which the UK business confidence has hit a 15-month low in June.

Barratt Developments Plc (LON: BDEV): The shares of the leading UK-based housebuilding group, Barratt Developments Plc, plummeted by 4.50%, with a day’s low of GBX 454.60. In the first four months of the year, the company has built 362 homes per week on average, up from 321 in the same period last year.

Persimmon plc (LON: PSN): The shares of the British home building company, Persimmon plc, tumbled by 3.32%, with a day’s low of GBX 1,851.50. The company has recently announced that Jason Windsor, who was appointed as its new CFO last month, would take up his position on 11 July 2022.

DS Smith Plc (LON: SMDS): The shares of the UK-based global packaging business, DS Smith plc, plunged by 4.72%, with a day’s low of GBX 278.60. The company has recently hiked its dividend payout by 24% amid a demand surge in cardboard packaging.

US Markets: The US market is likely to get a sluggish start, as indicated by the futures indices. S&P 500 future was down by 42.25 points or 1.11% at 3,778.75, while the Dow Jones 30 future was down by 1.03% or 318 points at 30,675.00. The technology-heavy index Nasdaq Composite future was also down by 1.21% or 141 points, at 11,544.00. (At the time of writing – 9:00 AM ET).

The shares of the American drug store operator, Walgreens (WBA), were down by 2.7% in the premarket trading session. The company earned an adjusted revenue of 96 cents per share for its most recent quarter, surpassing the estimated by 4 cents.

The shares of the American spirits producer, Constellation Brands (STZ), were up by 1% in the premarket trading session. This happened after the company reported the above-expected adjusted quarterly earnings and revenues.

European Indices Performance (at the time of writing):

FTSE 100 Index One Year Performance (as on 30 June)

                                                          (Source: Refinitiv)

Top 3 Volume Stocks in FTSE 100*: Lloyds Banking Group plc (LLOY), Vodafone plc (VOD), Barclays (BARC)

Top 3 Sectors traded in red*:  Real Estate (-4.54%), Basic Materials (-3.79%), Financials (-3.10%)

London Stock Exchange: Stocks Performance (at the time of writing):

 

Crude Oil Future Prices*: Brent future crude oil (future) price and WTI crude oil (future) price were hovering at $110.33/barrel and $107.47/barrel, respectively.

Gold Price*: Gold price was hovering at around US$ 1,817.05 per ounce, down by 0.02% against the prior day's closing.

Currency Rates*: GBP to USD: 1.2186; EUR to USD: 1.0431.

Bond Yields*: US 10-Year Treasury yield: 3.026%; UK 10-Year Government Bond yield: 2.3145%.

*At the time of writing

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