The FTSE 100 closed down on Tuesday after investors failed to find any major catalysts for significant moves in equities.
The FTSE 100 ended the day down 0.18% as traders returned to their desks after the long bank holiday weekend.
However, the tepid trade is unlikely to last long as markets gear up for US CPI tomorrow and further central bank action later this week.
Last week’s Federal Reserve and ECB decisions will be followed by the Bank of England, which is expected to raise rates to 4.5% on Thursday.
“European markets were fairly quiet on Tuesday compared to Asia where there were more pronounced moves up and down,” said Russ Mould, investment director at AJ Bell.
Housebuilders
Housebuilders were among the top fallers at the close on Tuesday after data from Halifax suggested the uptick in housing activity could be short-lived.
The housebuilding sector rose sharply last week after Nationwide data pointed to a recovery in house prices after months of declines. The timings of the Halifax and Nationwide data provide a mixed picture of the UK housing market.
“The Halifax figures pour cold water on the growing fires of optimism that had been lit across the property market in recent weeks. After clinging onto dwindling annual growth for a few months, the figures are now at a tipping point,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.
“The spring has produced a wave of positive announcements – from mortgage approvals rising for a second consecutive month, to Nationwide’s 0.5% bump in April, and Zoopla’s claim that demand has hit a high for 2023. The RICS residential market survey for March still painted a picture of falling demand, dwindling sales and lower house prices, but there was hope that this could all turn around in April.”
The ‘cold water’ saw Persimmon, Taylor Wimpey and Barratt Developments fall around 1.7%-2.2%.
IAG was the top riser as optimism grows travel is gaining momentum, and leisure companies are in for a strong summer. IAG closed up 3.87%.