FTSE lower as house builders and miners decline
Fiona Cincotta July 5, 2019 10:46 AM
House builders and mining companies are weighing on the FTSE, the latter sliding because of a drop in metals prices over the last few days, the former because of a 0.3% decline in UK house prices in June.
House builders and mining companies are weighing on the FTSE, the latter sliding because of a drop in metals prices over the last few days, the former because of a 0.3% decline in UK house prices in June. However, the case for property companies is actually less negative than investors have anticipated as UK house prices have risen by 5.7% in the last three months compared with same period in 2018.
The FTSE is faring worse than its European peers as shifts in domestic politics and at the helm of the European Commission spell difficulties ahead.
Tories preparing for general election in the autumn?
Of the two candidates for the Tory party leadership Boris Johnson now looks firmly in the lead but if he does take over as the head of the party and becomes Prime Minister it remains to be seen if he – or Jeremy Hunt for that matter – will be able to hold onto this position. MPs from his own party are expecting that there will be a call for a general election once he arrives in Downing Street and they plan to spend the summer preparing for an election possibly as soon as October.
With this much political upheaval there will be no time to actually negotiate a Brexit agreement with the EU before the end of October meaning that the country will be heading for a no-deal Brexit. The pound is sliding lower against the dollar today, but the decline is tempered by expectations that MPs will somehow put the brakes on the no-deal Brexit before it is too late.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.