LONDON: Britain’s equity indexes steadied early yesterday as some fresh, worrying signals about the European economy dampened investor appetite for shares after a strong run.
Mid-cap estate agency Foxtons led declines on the broad FTSE 350 index as it fell 5.3 percent after saying it expected to see a slow down in the rapid rate of property transactions in the second half of the year, due to government measures aimed at controlling mortgage lending.
The group said that expectations of an increase in interest rates were already having an impact on short-term demand.
Curbing investor appetite in the broader market, data showed German consumer morale fell for the first time in more than 1-1/2 years heading into September as shoppers grew more wary of the impact on Europe’s largest economy of sanctions on Russia and other international conflicts.
Meanwhile, Italy’s economy minister said the eurozone’s No.3 economy must lower its output growth forecast, a move which could bring the government into line with most economists who expect little or no growth this year.
The blue-chip FTSE 100 index was flat at 6,822.79 points at 0749 GMT, with the broader FTSE 350 also unchanged at 3,710.64 points.
The FTSE 100 has risen 4.5 percent over the past 2-1/2 weeks, boosted by speculation the European Central Bank would intervene again to shore up the euro bloc’s struggling economy. The index was now less than 1 percent away from a 14-year high of 6,875 points hit in May.
“There’s a lot of confidence returning to market with the ECB (speculation),” Chris Beauchamp, a strategist at spreadbetter IG, said.
Reuters
