UK Confidence Flat, Home Prices Fall

Arthi Gupta
31 Aug, 2012
New York City

The UK market indexes advanced and consumer confidence index remained unchanged and home prices declined in August. Computacenter first-half group revenue rose 4.2% to

[R]3:30 PM London – The UK market indexes advanced and consumer confidence index remained unchanged and home prices declined in August. Computacenter first-half group revenue rose 4.2% to £1.42 billion. Restaurant Group said first-half revenues increased 7% and adjusted net rose 7.5%.[/R]

Stocks in early trading in London were under pressure as they have been all week in light trading. Resource and banking sector sectors were generally active and volatile as the iron ore prices traded near a 3-year high.

Fed Chairman Ben Bernanke in a speech at economic symposium said he remains open to additional policy actions and said U.S. economic growth as “tepid” and said economic growth “was far from satisfactory.”

Bernanke in a generally positive speech fell short of clear and immediate measures announcements and market indexes in New York turned volatile. Several market watchers concluded that the Fed is gearing up for more stimulus measures but the size of the action may be muted.

The merger partners Glencore and Xstrata traded higher in the morning despite Qatar Holding reiterated its stance against the merger and said it will vote against the plan on September 7 meeting.

Consumer confidence in the United Kingdom remained flat and home prices declined in August.

In London, the benchmark index FTSE 100 gained 21.27 or 0.4% to 5,740.60 and the pound edged higher to $1.5857.

For the week, the FTSE 100 declined 1.9%.

UK Sentiment Flat

Consumer confidence in the United Kingdom remained unchanged in August, data from a survey by GfK showed today.

The consumer confidence index remained unchanged from the previous month at -29 in August.

Households'' views of the general economic situation in the last 12 months moved up to -55 from -59 in July.

UK Home Prices Fall

UK home prices declined 0.7% annually in August, following a 2.6% drop in July, Nationwide Building Society said today.

Home prices rose 1.3% from a month ago in August, from a 0.8% fall in July.

The average price of a UK home was at £164,729.

Gainers & Losers

Computacenter plc rose 1.4% to 375.08 pence after the information technology solutions provider said first-half group revenue rose 4.2% to £1.42 billion from £1.37 billion in the first half of last year. Group adjusted profit before tax for the period fell 9.8% to £24 million.

Marshalls plc gained 0.1% to 81.04 pence after the garden products manufacturers said first-half revenue fell 5% to £167.5 million from the same period of last year. Operating profit, before operational restructuring costs and asset impairments, was £9.5 million in the period.

WPP Plc, the advertising company fell 0.4% to 815 pence after a broker downgrade.