UK stocks fall as real estate shares drop
Business
UK stocks fall as real estate shares drop
(Reuters) - UK stocks inched lower on Monday led by a drop in shares of real estate investment trusts, while investors awaited key economic data to assess the strength of the British economy.
The commodity-heavy FTSE 100 (.FTSE) edged 0.1% lower, while the mid-cap index FTSE 250 (.FTMC) fell 0.4% after logging its best week in a year on Friday.
Shares of real estate investment trusts (.FTNMX351020) shed 1.2% after the index tracking real estate stocks rose sharply last week.
Aerospace and defence stocks (.FTNMX502010) rose 0.7% boosted by a 4.0% gain in shares of Melrose Industries (MRON.L) after the aerospace supplier said GKN Aerospace Engines business expanded its partnership with GE Aerospace.
All eyes will be on the UK GDP data this week, which is expected to show a contraction of 0.1% every month in September, compared with growth of 0.2% a month ago, according to a Reuters poll of economists.
"Overall, none of our survey indicators point to a household recession – at least not yet," Sanjay Raja, chief UK economist at Deutsche Bank said in a note.
"A sluggish growth profile remains more likely, with lingering pessimism from the cost of living shock and the unfolding interest increase still working its way through the economy."
Other economic data this week includes housing prices, construction and services activity for October.
Investors will also monitor commentary from a slew of Bank of England officials, including Governor Andrew Bailey who will be speaking at the Irish central bank conference on Wednesday.
Among individual stocks, Hipgnosis Songs Fund (SONG.L), which had been undertaking a review of its financial position, fell 5.2% after it said it would not declare dividends before its new fiscal year to ensure sufficient cash resources.
EasyJet (EZJ.L) and Wizz Air (WIZZ.L) gained 3.7% and 3.0%, respectively, after Ryanair (RYA.I) forecast a record annual profit and promised a regular dividend pay.
Sportswear retailer JD Sports (JD.L) climbed 1.2% after Citigroup initiated coverage on the stock with a "buy" rating.
