Wednesday, June 27: The FTSE 100(+1.11%), alongside European indices continued to rebound, with the main index in London buoyed as trade war worries subsided lifting engineering and basic materials groups, as an oil prices rally lifted oil majors.
Ocado was one of the notable movers on the primary index(+3.91%) after market research from Kantar indicated the technology company was one of the fastest growing UK supermarkets with sales growth of 10.1%, nudging its share of the UK grocery market up to 1.2%.
Similarly, Sainsbury’s was up a similar degree(+2.11%) amidst expectations of “accretion aplenty” from brokers should the merger will Walmart’s ASDA complete. The merger still has to be ratified by the Competition and Markets Authority; rumour is that a divestment of upto 25% of ASDA’s estate may be required to see the deal through. Irrespective, a decision isn’t seen to be forthcoming until mid-2019.
British house prices rose at their slowest annual pace for five years this month and look set to remain subdued due to modest economic growth and squeezed household budgets, mortgage lender Nationwide reported. House prices across the UK were on average 2.0% higher this months, a slowdown from 2.4% growth in May. The consensus view is that while surveyors continue to report subdued levels of new buyer enquiries, tight supply, a robust labour market and lengthening of favourable mortgage terms should help prevent prices from falling outright. The data also indicated that London was the only region of the UK to record an annual price fall in the second quarter, with average prices 1.9% lower than a year earlier compared with increases of 4% or more in Wales and Central England. However, London property prices remained 50% higher than their level before the financial crisis, whereas the majority of Northern England has seen no price appreciation over the same period.
Across Europe, indices were higher at the close with the FTSE 100 +1.11%, the DAX 30 +0.93% and the CAC 40 +0.87%.