British Equities Rise as Personal Goods Sector Surges, Economic Data Shows Slowing UK Economy
British equities saw a slight increase on Tuesday, with both the FTSE 100 and FTSE 250 benchmarks rising 0.1% and 0.3%, respectively. The personal goods sector played a major role in this upward trend, gaining 2.2%. Watches of Switzerland, in particular, experienced a surge as the company maintained its sales and profit forecast for 2024, causing its stock to soar by 13.2% in early trade.
Homebuilders also saw positive movement, rising by 1.1%. This increase was largely attributed to the fact that British house prices put an end to six consecutive months of falls in October. This change is indicative of a lack of homes being put up for sale. Persimmon, one of the UK’s largest housebuilding companies, saw its stock rise by 2.1% as it announced plans to build more homes this year than previously expected.
Vistry, another major homebuilder, experienced a 2.5% climb following the announcement of an £819 million ($1 billion) deal with Blackstone-backed firms Leaf Living and Sage Homes. This deal aims to deliver 2,915 homes starting this year.
However, not all sectors fared as well. Precious metal miners faced a 1% decline, leading the losses. This drop can be attributed to a decrease in gold prices, which fell to a near two-week low. Additionally, oil and gas shares fell by 0.8% due to lower prices.
In further news, Naked Wines, an online wine retailer, saw a significant drop of 23.3% after it revised its annual revenue and profit outlook. The company cited weak performance in the U.S. market as the reason for the downward adjustment.
These developments come as investors closely monitor economic data that suggests a slowing UK economy. Despite the overall positive movement in British equities, the market remains cautious in light of these indicators.
As the UK continues to navigate the challenges posed by Brexit and the ongoing COVID-19 pandemic, investors will be keeping a close eye on economic data and sector performances for potential insights into the future direction of the country’s economy.
Sources: Reuters, Bloomberg
More detail via Investing.com UK here… ( Image via Investing.com UK )