Housing fears sees FTSE topple 26 points
Shares in UK housebuilders plummeted today after evidence of a cooling in the housing market led estate agency group Countrywide to issue a profits warning.
A string of second-tier companies suffered heavy losses after the announcement, which came as the International Monetary Fund warned rising interest rates could trigger a house price crash in the UK.
By mid-morning the FTSE 100 Index was 26.1 points lower at 4566.2 as heavy losses on Wall Street overnight cast a shadow over markets.
The Dow Jones Industrial Average closed 135 points in the red last night as oil prices continued to rise.
In London, some of the biggest news came from the FTSE 250, with estate agency group Countrywide losing 11%, down 37p to 285p, as it warned annual results would be below current expectations.
Low-cost airline easyJet also retreated 5p lower to 134p despite forecasting that profits would fly higher than expected in 2004.
Back in the top flight, a clutch of oil-dependent stocks were lower, including jet engine maker Rolls-Royce, off 2.75p to 244.25p, while BAE Systems lost 2p to 215.25p
The cost of a barrel of US light crude stood just above $47 today after pushing through the $48 mark last night.
The hike boosted oil giant BP, up 2p at 536p, although rival Shell lost 5p to 413p as investors continued to give a continued cool reception to its plans to make major disposals after its reserves crisis.
Brewer SAB Miller was among a small number of top flight companies in positive territory after reporting a strong performance in the first five months of its financial year. Shares rose 2p to 718.5p.
