UK Indexes Drop 2.2%; Leading Index Rises

Arthi Gupta
10 Apr, 2012
New York City

The UK indexes declined more than 2% after the leading economic index for the UK rose but Irish manufacturing fell in February Home price balance for the UK improved in March.

[R]5:30 PM London – The UK indexes declined more than 2% after the leading economic index for the UK rose but Irish manufacturing fell in February Home price balance for the UK improved in March.[/R]

The UK indexes declined tracking losses in the global markets. Rise in yields of Italian and Spanish government bonds did not boost investor sentiment.

In London trading, the benchmark index FTSE 100 slumped 128.12 or 2.2% to 5,595.55 and the pound edged lower to $1.5835.

UK Home Price Balance Improves

Home prices in the United Kingdom improved in March, according to survey results released Tuesday by the Royal Institution of Chartered Surveyors.

The RICS Home Price Balance for March was minus-10, compared to minus-13 in February.

UK Leading Index Rises

The leading economic index for the UK increased to 102.6 in February from 101.6 in January, data from a survey by Conference Board showed today.

The coincident economic index, which measures the current situation, remained unchanged for the second straight month at 102.3 in February

Irish Factory Output Drops

Ireland''s manufacturing production fell 3.3% on an annual basis in February, reversing the 0.1% gain recorded in January, data released by the Central Statistics Office showed.
From a month ago, factory output declined 3.6% in February following the 0.8% rise in January.

Gainers & Losers

Accenture plc fell 0.6% to $63.33 after the technology services and outsourcing company completed the acquisition of Neo Metrics Analytics S.L.

HSBC Holdings Plc slumped 3.2% to 537 pence after the banking and financial services organization’s wholly-owned subsidiary Hong Kong and Shanghai Banking Corp. Ltd. confirmed that it is in talks concerning a possible sale of its retail banking and wealth management business in Korea to Korea Development Bank.

Randgold Resources Ltd soared 5.2% to 5,425 pence after the miner welcomed a political settlement in Mali and said its production forecast for 2012 remains unchanged.

Thomas Cook Group plc surged 13.4% to 23.25 pence after the leisure travel company confirmed that it is in advanced discussions with its banking group about extending its financing arrangements.