UK Home Prices Up 0.1%; Money Supply Growth Slows

Arthi Gupta
29 Sep, 2011
New York City

The UK indexes traded sideways despite positive developments in Europe. The UK mortgage approvals rose more than estimated and money supply growth slowed in August. However, home prices in the UK rose 0.1% in September.

[R]3:15 PM London – The UK indexes traded sideways despite positive developments in Europe. The UK mortgage approvals rose more than estimated and money supply growth slowed in August. However, home prices in the UK rose 0.1% in September.[/R]

Germany Approves Bailout Fund

German lawmakers agreed to expand the bailout fund and the German Parliament voted in favor of the strengthened euro-zone bailout fund.

The proposal for the expansion of the European Financial Stability Facility was passed with an overwhelming majority in a vote held in the lower house of the German parliament Bundestag with 523 votes in favour, 85 against and 3 abstentions.

The Bundestag approval paves way for raising Germany''s contribution to the EFSF from €123 billion to €211 billion.

In London, FTSE 100 Index gained 12.15 or 0.2% to 5,228.68 and the pound edged lower to $1.5638.

UK Mortgage Approvals Rise

The number of loan approvals for home purchase in the UK rose in August, data released by the Bank of England showed today.

Mortgage approvals rose to 52,410 in August from 49,644 in July. Lending rose by £0.6 billion in August, after a £0.7 billion increase in July.

UK Home Prices Up

UK home prices rose 0.1% from a month ago during September to £166,256, from £165,914 in August, according to data released by Nationwide Building Society.

UK Money Supply Growth Slows

M4, which is a measure of the quantity of UK money supply, dropped a seasonally adjusted 0.6% annually in August, after declining 1.1% in July. Money supply fell for the eleventh month in a row.

On a monthly basis, M4 money supply decreased 0.2% in August after remaining flat in July.

Gainers & Losers

Autonomy Corporation plc rose 0.2% to 2,543 pence after the software company announced that Hewlett-Packard Vision B.V., a newly incorporated, indirect wholly-owned subsidiary of Hewlett-Packard Co. has confirmed the receipt of all anti-trust clearance and expiry of waiting periods for their merger.

BG Group plc fell 1.1% to 1,248.50 pence after the natural gas company inked a Heads of Agreement with Gujarat State Petroleum Corporation for the long-term supply of up to 2.5 million tonnes per annum of Liquefied Natural Gas.

BP plc slid 1.1% to 395.55 pence after the oil and gas explorer would consider sale of some of its assets in Europe and North America to India''s Reliance Industries, the Economic Times reported, quoting the British oil company''s chief executive Bob Dudley.

ICAP Plc declined 0.4% to 427.60 pence after the inter-dealer broker estimated revenues for the first-half to be marginally ahead of the same period last year.

RM Plc plunged 17.4% to 83.25 pence after the educational products and services provider said its fiscal year 2011 operating results would miss current analyst forecasts. The company also plans job cuts.