Taylor Wimpey drops 12 percent on mortgage approvals data

| June 24, 2008
Taylor Wimpy drops 12 percent on mortgage approvals data

In London on Tuesday, the FTSE 100 was 0.57 percent lower to 5,634.7 while the FTSE 250 dropped 1.38 percent to 9,192.3.

House builders Taylor Wimpy (LSE: TW) and Barratt Developments (LSE: BDEV) led the sector lower with declines of 12 percent and 11 percent respectively after the British Bankers Association reported that mortgage approvals were down 20 percent in May from April’s numbers and had dropped 56 percent from the same period last year.

European markets also saw declines.

The FTSE Eurofirst 300 was down 0.71 percent to 1,214.25 while the Dax was 0.81 percent lower to 6,536.06 in Frankfurt, the Paris CAC-40 fell 0.83 percent to 4,472.76 and Madrid’s IBEX dropped 1.59 percent to 12,205.6.

Most Asia-Pacific equities markets were also lower, although Australian markets saw gains, with the S&P/ASX200 adding 0.12 percent to 5,290 and the Sydney Ordinaries gaining 0.18 percent to 5,418.8, while the Shanghai Composite was 1.54 percent higher to 2,803.2.

On the other hand, South Korea’s Kospi index was down 0.28 percent to 1,710.84 while the Straits Times Index was 0.57 percent lower to 2,962.16, the Hang Seng fell 1.14 percent to 22,456.02, the Sensex dropped 1.31 percent to 14,106.58, and the Taiex was down 1.76 percent to 7,738.12.

In Tokyo, the Topix index added 0.09 percent to 1,349.19 but the Nikkei 225 fell 0.06 percent to 13,849.56 and the Mothers market dropped 2.09 percent to 582.66.

Wall Street was a bit higher in afternoon trade, with the Dow Jones Industrial Average up 0.28 percent to 11,874.93 while the Nasdaq Composite was 0.23 percent higher to 2,391.33 and the S&P 500 gained 0.36 percent to 1,322.78.

Crude oil prices closed higher after being slightly lower for awhile in afternoon trade, while gold prices rose even as other precious metals declined and grains prices were also mixed.

Both the pound and the US dollar were weaker in relation to the euro after mortgage approvals were reported lower in May in the UK and home prices fell for the sixteenth month in a row in the US.

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