FTSE 100 index closes higher before Christmas despite weaker housebuilders
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The FTSE 100 enjoyed a festive boost in a quiet trading session as London's markets wrapped up early for Christmas. The rise came despite a slump in the capital's housing shares, triggered by another profit warning from construction giant Vistry. Retail shares climbed on the back of optimism that consumer confidence might pick up next year, even though recent sales and footfall figures for the crucial pre-Christmas weekend were disappointing.
The FTSE 100 closed up 34.27 points, or 0.42%, finishing at 8,136.99. Hargreaves Lansdown's senior equity analyst Matt Britzman commented: "The FTSE 100 delivered positive Christmas Eve trading, despite a week clouded by lacklustre economic data.". He added: "Monday’s session saw the index close slightly lower after opening in the red, as final GDP figures revealed the UK economy stalled in the third quarter with no growth from the prior period.".
Across the Channel, European markets had a mixed day, with German stocks retreating after an earlier rally. The Cac 40 ended the day up 0.25%, while the Dax index fell by 0.18%. In currency news, the pound made a modest recovery after plummeting to a seven-month nadir on Monday following dismal UK GDP numbers that hinted at potential rate cuts.
Sterling was up 0.12% against the US dollar at 1.255 and rose 0.24% against the euro to 1.207. Vistry, the Kent-based housebuilder, was one of the biggest losers after it warned that delays to some home completions and deals will reduce its annual profit by about £50m. This is its third profit warning in recent months.
