1630: Close The FTSE closed down more than 50 points today, with mining stocks bearing the brunt of the market-wide sell-off as traders adopted a cautious approach ahead of the weekend. Also weighing heavily was Persimmon after it said it will no longer construct as many properties in the south Wales valleys as they fail to generate sufficient profit. Meanwhile, the ONS said today that the UK index of services increased at a 1.8 per cent pace year-on-year during July, while UK consumer confidence in September rose to the highest level since 2010 as signs of economic recovery encouraged spending. It was also revealed that the North-South property price divide was at its widest level yet in September. The FTSE closed down 52.93 points at 6,512.66.
1600: The University of Michigan´s consumer confidence gauge for the month of August has come in at 77.5, versus a reading of 76.8 for the month of July (Consensus: 78.0).
1440: This past week one of homebuilder Persimmon´s executives, Nigel Greenaway, opted to sell some of his shares
in the company. More interestingly, the stock may be drawing a head-and-shoulders chart pattern, which could see it drop lower if it is confirmed. That comes after recent criticism of the government Help to Buy scheme which has seen the chancellor ask the FPC to review Help to Buy every year, and not every three years, to evaluate if it does indeed run the risk of creating a house price bubble.
1430: US personal income and spending data for the month of August have come in as expected, rising by 0.4 per cent and 0.3 per cent on the month each one respectively.
1133: In a research note put out this morning analysts at Credit Suisse indicate that they have reduced their recommended weighting for beverages to benchmark from overweight in their model portfolios. Amongst the reasons cited are valuation (its the 3rd most expensive sector in Europe, 1 above average on price-to-earnings and price-to-book) and has the 2nd worst earnings revisions, while sell-side analysts are very bullish on the sector. Yet, we still prefer beverages to food [which are now at underweight]: same price-to-earnings, but better growth potential and industry structure. As an aside, they point out that emerging market growth continues to weaken relative to developed ones, with relative PMIs the lowest since the data started (back in 2002), they go on to explain. Hence, they see further downside risks to emerging market currencies.
1030: For Ben Thompson, MD Legal & General Mortgage Club, George Osborne's announcement that the FPC should review the Help to Buy scheme on a yearly basis is sensible so as to ensure it isn't causing drastic increases in house prices, we think talk of a housing bubble is slightly premature.
0931: Mark Zandi of Moody's Analytics estimates that a three-to-four week shutdown of the US government would cut US economic growth by 1.4 percentage points in the last three months of the year. FTSE 100 down 38 to 6,527.
0930: During the second quarter of 2013 the index of services was 0.3 per cent below its peak level in the first quarter of 2008, demonstrating that almost all of the lost output in services during 2008 and 2009 has now been recovered. Output advanced at a 1.8 per cent clip year-on-year in July, ONS figures show.
0833: UK stocks have begun the session with moderate falls despite the positive close to trading on Wall Street, last night. That comes ahead of the release of new macroeconomic data releases Stateside, this afternoon, and against the backdrop of the looming budget deadline for the US Congress. To be had very much in account, in an interview with the Yorkshire Post BoE Governor Mark Carney indicated that his personal opnion for now is that no further QE is needed for now. That comes as George Osborne has asked the FPC to review on a yearly basis if the Help to Buy scheme does indeed run the risk of creating a house price bubble. Quite interesting as well, and worrying, are remarks by Kevin McCullough, the Chief Executive of UK Coal, has called for the Government to take control of assets in the country that are owned by German, French and Spanish companies. The GfK consumer confidence index rose to -10, from -13 in August (Consensus: -11), to its highest level since November 2007. No other data releases are scheduled for release in the UK today. FTSE 100 down 20 to 6,546.