There were
no major economic releases today, however, the market will be looking
forward to Wednesday’s Net Consumer Credit and M4 Sterling Lending,
both of which are expected to beat the previous month’s figures.
The UK was bereft of any significant economic releases on Tuesday, save for the fact that oil giant Shell’s announcement for the unification of its Dutch and British parent companies sent a wave of “buy” sentiment through the FTSE 100. Shell’s unexpected gain of 2.4% in early trading, coupled with oil’s incessancy of trading above $60 a barrel, caused rivals BP and BG Group to both jump in prices, ultimately lifting London’s benchmark index to 5,069.50, up 26 points or 0.5% from late Monday. However, though oil companies stood to gain, chemical companies like ICI were hurt from the rising prices; British Airways surprisingly gained 0.6 percent after Monday’s steep sell-off. The housing sector faced downside pressure as Wilson Bowden slipped 2.8% after declaring that the housing market had tamed.
The 10-year gilt pushed up 4 percentage points to a 4.207% yield, rebounding from yesterday’s 4.17% figure, the lowest since October of 2003. The drop in yields, which move inversely to price, suggested that demand for government debt is growing in the slowing UK economy, which is being marked by lower housing prices in June and a weak retail figure in May.
The UK was bereft of any significant economic releases on Tuesday, save for the fact that oil giant Shell’s announcement for the unification of its Dutch and British parent companies sent a wave of “buy” sentiment through the FTSE 100. Shell’s unexpected gain of 2.4% in early trading, coupled with oil’s incessancy of trading above $60 a barrel, caused rivals BP and BG Group to both jump in prices, ultimately lifting London’s benchmark index to 5,069.50, up 26 points or 0.5% from late Monday. However, though oil companies stood to gain, chemical companies like ICI were hurt from the rising prices; British Airways surprisingly gained 0.6 percent after Monday’s steep sell-off. The housing sector faced downside pressure as Wilson Bowden slipped 2.8% after declaring that the housing market had tamed.
The 10-year gilt pushed up 4 percentage points to a 4.207% yield, rebounding from yesterday’s 4.17% figure, the lowest since October of 2003. The drop in yields, which move inversely to price, suggested that demand for government debt is growing in the slowing UK economy, which is being marked by lower housing prices in June and a weak retail figure in May.
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