UK real estate stocks rise sharply on dovish Fed

Urban Logistics Reit

14/12/2023 09:58

** UK homebuilders' index  .FTNMX402020  up 4.7% and FTSE
Real Estate index  .FTUB3510  gains 5.7%
    ** Shares of UK real estate firms rise sharply after the
U.S. Federal Reserve indicated that its interest-rate hike cycle
has ended and that lower borrowing costs are coming in 2024
    ** A rate cut filters down to a halt in rise of mortgage
rates, fuelling demand for homes. It also bolsters investment
market opportunities for commercial property firms
    ** The Bank of England is expected to keep interest rates at
a 15-year high but investors are focused on whether policymakers
will push back against fast-growing market bets on a string of
rate cuts next year
    ** FTSE 100  .FTSE  homebuilders Barratt  BDEV.L , Taylor
Wimpey  TW.L  and Berkeley  BKGH.L  rise between 3% and 5%
    ** Midcap housebuilders Persimmon  PSN.L , Vistry  VTYV.L ,
and Crest Nicholson  CRST.L  gain between 6%-7%
    ** Commercial property firm Great Portland Estates  GPEG.L 
top pct gainer on real estate index, rising ~8%
    ** Major landlords Land Securities  LAND.L  and British Land
 BLND.L  up 6% and 6.7%, respectively

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