Tue, 1st Oct 2013
The FTSE 100 slipped by 0.85% to 6,457 by lunchtime yesterday, as miners dragged the index down and the markets struggled due to political and economic troubles around the world.
The US government is on the verge of a shutdown as they have still not agreed on a new spending bill that would raise the debt-ceiling limit. If the shutdown occurs, then this would adversely affect economic growth during an incredibly fragile time period.
The US was not the only part of the world to be struggling. The equity market across the whole of Europe fell sharply and the Chinese economic data published this week was poorer than expected. Mining stocks were among the worst performers, with Fresnillo, Antofagasta, Anglo American and Rio Tinto all slipping significantly thanks to poor economic data coming out of China.
House prices in the UK increased by 0.5 percent month-on-month and the government announced that it would be launching the second phase of the Help to Buy program in October. This news did little to bolster a struggling market. Individually, housing companies performed well, with Persimmon regaining some of the value that it had lost last week. Persimmon recently halted some housing developments in Wales and that news caused the company to lose a lot of value last week.
Several housing companies in the FTSE 250 also gained because of the Help to Buy news, with Taylor Wimpey and Bellway being among the top performers of the day.