UK stocks experienced decline today as yields on the Italian bonds increased whereas Great Britain sold debt. Apart from that, recent US housing data showed that pending house sales experienced a drop in last month. The benchmark gauge of UK, FTSE 100 Index tumbled by 0.3%. It dropped by 20.74 points and is currently at 6378.63. In 2013, the gauge has surged ahead by 8% mainly because of the US budget deal being finalized right at the start of this year. It was supported throughout by the better than expected US housing data too. The broader FTSE All Share Index tumbled by 0.4%, whereas, the benchmark gauge of Ireland, ISEQ Index experienced a slid of 0.1%. The overall trading volume for the FTSE 100 listed companies was 25% better than the average of last 30 days.
According to the Chairman of UBS AG, Axel Weber, they are pretty neutral on the entire Europe continent at this point of time. Axel added that they have not taken any stance against Europe, but, as far as growth story is concerned, nothing such is visible right now. Axel commented further that there are several structural issues which are yet to be addressed and such things definitely will not do any good to the equities.
The contracts to buy previously owned houses in US declined by 0.4% in February; this is more than the forecasted drop of 0.3%. Incidentally, in January, the increase was of 3.8%, the best pace since last May.
UK economy has declined by 0.3% in the 4th quarter of 2012 if compared to that of the 2011, for the same time period. The details were released by the Office for National Statistics and this marks the 4th contraction in the last 5 quarters. According to the latest statement released by the Bank of England, UK lenders should attempt to raise minimum of $38 billion for making up a shortfall in capital, for covering higher estimates for expected loan losses, better risk calculations and possible fines.
The biggest broker of transactions between the banks, ICAP Plc. announced that their profit will drop in 2013 and as a result, it experienced a decline of 2% to 1056 Pence per share. TUI Travel Plc., however, increased by 3.8% as it forecasted that the operating profit of the same will increase more than the initial projections made.