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09/08/24
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FTSE 100 In UK Records Second Straight Losing Week
On Friday, London’s main equity indexes recorded losses for the second straight week but closed higher for the day, supported by strong gains in homebuilder stocks. This week’s positive U.S. jobs data eased fears of recession in the biggest economy in the world.
The blue-chip FTSE 100 index was 0.3% higher for the day, and the mid-cap FTSE 250 gained 0.6%. Both indexes however closed the week lower, with midcaps 1.5% down.
Thursday’s report on weekly U.S. jobless claims dropped more than expected, indicating that fears of the labor market easing were exaggerated.
Global markets were volatile this week as fears of a recession in the U.S. after July U.S. jobs data and the yen surging after the Bank of Japan hiked interest rates on Jul. 31 resulted in investors unwinding yen carry trades.
Homebuilders were among the top gainers in London and rose 1.5%, after Bellway offered an upbeat outlook of the sector after the rate cut by the Bank of England and the new labor government’s proposal for planning reforms.
The real estate sector index and the rate-sensitive real estate investment trusts measure also rose 1% each.
Declines were led by the luxury sector, drugs and grocery stocks and personal care, 0.8% down each.
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