Housebuilders Under Pressure

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Friday, 7th June: The FTSE 100 had a strong start to the day as it opened 0.22% higher. Oil was largely to thank for this as a 1.6% increase of Brent crude to $62.68 pushed all the oil stocks to the top of the index.

The blue-chip index continued to strengthen throughout the day, despite a negative reaction to new UK housing sector data which dragged the likes of Berkeley, Barratt and Taylor Wimpey to the bottom end of the index. House prices were 2.5% higher in the latest quarterly period from March to May in comparison to December to February, and 5.2% higher than the same three-month period in 2018.

The dollar was also struggling today following the announcement of weaker than expected US employment figures were released, which consequently brought to light the likelihood of the Fed easing up on monetary policy sooner than expected by bringing forward a rate cut. GBP/USD was 0.38% higher in the afternoon at $1.2743, and the dollar against a basket of 16 currencies was down 0.3%.

The FTSE 100 closed an impressive 0.99% higher at 7331.94 on Friday, and the FTSE 250 followed by closing 0.88% higher at 19,232.

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