UK Home Prices Fall, BP in $7.8 Billion Settlement

Arthi Gupta
24 Dec, 2012
New York City

The UK indexes gained after home prices and household finance index fell in December. Smith & Nephew completed acquisition of Healthpoint Biotherapeutics. BP plc won a $7.8 billion settlement with the Gulf of Mexico oil spill victims.

[R]1:10 PM London – The UK indexes gained after home prices and household finance index fell in December. Smith & Nephew completed acquisition of Healthpoint Biotherapeutics. BP plc won a $7.8 billion settlement with the Gulf of Mexico oil spill victims.[/R]

The UK indexes advanced in thin trading as many markets in Europe were closed and commodities prices eased.

In a shortened trading day, markets gained despite a drop in home prices and a downbeat financial outlook for 2013.

In London, the benchmark index FTSE 100 gained 14.19 or 0.2% to 5,954.18 and the pound edged higher to $1.6178.

UK Home Prices Fall

Average home prices in the UK declined 0.3% in the 12 months to December compared to a 2.3% fall over 2011, according to a survey published by Hometrack today.

During December, prices fell 0.1%, the sixth consecutive month in a row prices have decreased.

Hometrack forecast national home prices to fall 1% over 2013.

UK Household Finance Index Drops

The Markit household finance index for the UK dropped to 36.8 in December from a 23-month high of 39.3 in November.

December data indicated that households remain downbeat about the outlook for their finances over the next 12 months. Around 43% of respondents expect that their finances will worsen over the course of 2013 compared to 24% that forecast an improvement.

The index measuring households'' financial outlook dropped to 40.3 in December from 41.8 in November.

Gainers & Losers

BP plc, the oil and gas explorer declined 0.3% to $42.12 after a federal district judge approved a $7.8 billion settlement with victims of the Gulf of Mexico oil spill.

London Stock Exchange Group Plc gained 0.3% to 1,096 pence after the bourse operator will make a revised offer for a majority stake of up to 60% of LCH.Clearnet at a price of €15 per share. The offer price is based on the LSE completing the capital raising of €300 million.

Smith & Nephew plc declined 0.7% to $55.29 after the medical devices maker completed the acquisition of substantially all the assets of Healthpoint Biotherapeutics.