After a record fourth quarter, worries about rate hikes weigh on the FTSE 100 after strong economic data
- Barratt leads homebuilders to April 2020 intraday highs as the company leads the way to intraweek high high for Barritt.
- Just Eat Takeaway's order growth misses expectations, but Justeat Takeway continues to struggle.
- As Man Group's AUM rises to $139.5 billion, its stake in the company doubles.
- FTSE 100 down 0.2%, NASDAQ 250 up 0.6%,
On Wednesday, the London Stock Exchange's FTSE 100 index fell as signs of economic growth boosted early rate hike bets, despite gains in homebuilder stocks, as evidenced by strong earnings in Barratt Developments (Bergatt) Development Corporation, helping limit losses.
Homebuilders (.FTNMX402020) jumped 4%, their highest intraday gain since April 2020, with Barratt Developments PLC (BDEV.L) leading the pack, up 6%, after reporting sales above pre-pandemic levels and confirming it was on track to meet its 2022 and medium-term goals.
"The housebuilders have found themselves in a bit of snag, as they say. While pent-up lockdown demand is beginning to fade, people are still motivated to move, and that's pushed house prices higher. According to Barratt, that's been enough to offset build cost inflation," according to Laura Hoy, an analyst at Hargreaves Lansdown.
The blue-chip FTSE 100 index (.FTS) slipped 0.2% at 0920 GMT, with miners (.FNMX551020) and oil stocks ( (-FMTX601010) leading declines, while a stronger pound, up 0.3%, also weighed on the export focussed index.
Britain's economy returned to growth in August after sagging for the first time in six months in July, preserving financial market bets that the Bank of England will raise interest rates before the end of the year. read more
The BoE, facing an inflation rise, looks set to be the first major central bank to raise interest rates since the outbreak. Investors are betting on a 0.15 percent increase by December. BOEWATCH
The FTSE 100 has increased about 10% so far this year thanks to more lenient central bank policies, but it is just 9.6% away from its all-time highs to be significantly underperform the rest of Europe, which is only 3% below its historic high.
The domestically focused mid-cap index (.FTMC) increased by 1.1%, with travel and leisure stocks ( FTNMX405010) leading gains.
Man Group (EMG.L) in the United Kingdom gained 7.2% in three quarters and was the top gainer after its assets under management rose to a new $139.5 billion.
THG (THG.L) (ThG) decreased 2.7% as of 0922 GMT, extending losses after it made a presentation on Tuesday to reassure investors that it might reverse equities' recent drop.
After its third-quarter orders did not meet analyst expectations, Just Eat Takeaway's shares declined 3.6% to its lowest level since February 2019.