UK property, housing stocks gain as US inflation data boost rate cut hopes

Supermarket Income REIT

15/05/2024 15:55

** The FTSE Real Estate index  .FTUB3510 , which includes
commercial property firms and real estate investment trusts
(REITs), gains 2.5%
    ** UK homebuilders' index  .FTNMX402020  rises 2.5%
    ** Shares of UK real estate firms gain after US consumer
prices increased less than expected in April, suggesting that
inflation resumed its downward trend at the start of the second
quarter in a boost to financial market expectations that central
banks globally are nearing rate cuts
    ** Bank of England rate cuts filter down to lower mortgage
rates, boosting demand for homes, while falling yields due to
rate reductions bolster investment market opportunities for
commercial property firms
    ** Warehousing specialist Segro  SGRO.L  and self-storage
provider Big Yellow Group  BYG.L  rise 5% and 4%, respectively,
making them the top pct. gainers on the real estate index
    ** FTSE 100 homebuilder Persimmon  PSN.L  top pct. gainer on
the homebuilders' index, gaining 3.8%
    ** PSN's FTSE 100 peers Barratt  BDEV.L  and Taylor Wimpey
 TW.L  add on 3% and 2.3%, respectively

 (Reporting by Aby Jose Koilparambil in Bengaluru)
 ((abyjose.koilparambil@thomsonreuters.com))