The FTSE 100’s housebuilders took a slowing UK housing market in their stride on Thursday with Persimmon, Barratt Developments, and Taylor Wimpey all rising on the day.
Housebuilding shares gained despite UK house prices falling 1.4% in the month to October as the pressures of a cost of living crisis and fallout from the mini-budget hit activity.
The FTSE 100’s housebuilders are down heavily this year after much of the bad news on UK housing was largely priced in before the market started to deteriorate.
“Housebuilder shares, already heavily beaten down this year, were higher on the Nationwide data and even estate agents like LSL Property Services and Foxtons were only a smidge lower. This shows how the market has already priced in a lot of bad news regarding the property market,” said AJ Bell investment director Russ Mould.
A Fed pivot?
The FTSE 100 started the day on the front following comments from the Federal Reserve chair that raised hopes the US central bank was considering slowing the pace of rate hikes.
After a year of sharp interest rate hikes, the Federal Reserve could be about to amend the trajectory of their rates hikes which current sees a terminal rate of 5% in 2023.
The prospect of easier monetary conditions will be welcomed by the markets who are facing a slowing global economy.
The S&P 500 was up around 3% overnight and the FTSE 100 was trading at 7,580 at the time of writing.
Mixed commodities
Commodity shares were mixed as investors attempted to gauge news flow in China and whether the authorities could be about to end their zero-covid policy.
The FTSE 100 miners were weaker after a strong couple of weeks, and Shell and BP fell on lower oil prices.