UK’s FTSE 100 fell on Wednesday, as a slide in housing stocks after Barratt Developments’ disappointing results outweighed relief on a report that said the Bank of England could extend its emergency bond-buying programme.
The blue-chip FTSE 100 slipped 0.4%, poised for its sixth session of losses, while the midcap FTSE 250 index dropped nearly 2% to its lowest in over two years.
Banks drag UK’s FTSE 100 lower; all eyes on US inflation data
The pound reversed earlier losses and was last up 0.2% after the Financial Times reported the Bank of England has signalled it was prepared to extend its emergency bond-buying programme to stem a turmoil in the bond market.
Data earlier showed Britain’s economy shrank by 0.3% in August, hit by weakness in manufacturing and maintenance work in North Sea oil and gas fields, underscoring the challenge for Prime Minister Liz Truss to speed up growth.
Britain’s largest homebuilder Barratt Developments Plc fell 6% after it said its annual outlook looked “less certain” as homebuyers face rising mortgage rates and a worsening cost-of-living crisis.
The wider housing index tumbled 5%.
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