UPDATE 1-FTSE 100 reverses losses, miners and financials lead turnaround
*FTSE 100 up 0.6%, FTSE 250 gains 0.8%. Sept 4- The FTSE 100 reversed early losses on Friday as gains in mining and financial stocks pulled it back from a tech-fuelled plunge in the prior session, while housebuilders tumbled amid scrutiny from the UK’s competition regulator. The blue-chip FTSE 100 rose 0.6%, but was set for a third straight week of decline, while the…
* Homebuilders fall as regulator suspects malpractice
* U.S. jobs data due later in the day
* Homebuilder Berkeley gains on maintaining dividend payoutplan
* FTSE 100 up 0.6%, FTSE 250 gains 0.8%(Updates prices throughout, adds comments)
By Shashank Nayar
Sept 4 (Reuters) – The FTSE 100 reversed early losses onFriday as gains in mining and financial stocks pulled it backfrom a tech-fuelled plunge in the prior session, whilehousebuilders tumbled amid scrutiny from the UK’s competitionregulator.
The blue-chip FTSE 100 rose 0.6%, but was set for athird straight week of decline, while the mid-cap index FTSE 250added 0.9%. Major miners BHP Group and RioTinto rose on higher metal prices and improved prospectsin China.
“The slip during the opening trade in the FTSE was a kneejerk reaction to the tech sell-off we saw on Wall Streetyesterday. (However) we see investors turning more pragmatic andare re-entering the European markets on the back of cheapvaluations as against the United States,” said Andrea Cicione,strategist at T.S. Lombard.
Shares of housebuilders Barratt Developments,Persimmon Plc, Taylor Wimpey and CountrysideProperties fell between 1.0% and 3.5% after theCompetition and Markets Authority (CMA) said it wasinvestigating whether they might have broken a consumerprotection law in relation to leasehold homes. Those lossespulled the wider housebuilding index down 0.14% toa near one-month low.
The FTSE 100 has recovered nearly 17% from its multi-yearlows in March with the support of historical stimulus measures,but has lost nearly 23% so far this year.
All eyes are on the U.S. job growth data for August duelater in the day.
Elsewhere, housebuilder Berkeley Group rose 0.9%after maintaining its annual profit forecast and plans to payshareholder returns, as it benefited from a rebound in demandfor houses after coronavirus-induced restrictions eased.(Reporting by Shashank Nayar in Bengaluru; Editing bySubhranshu Sahu and Saumyadeb Chakrabarty)
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