The FTSE 100 has fallen into the red on the last day of November with investors staying on the sidelines ahead of the G-20 summit in Argentina. Blue-chip housebuilders are also weighing on the blue-chip index following data from Nationwide.
FTSE 100 down ahead of G-20 summit
As of 12:31 GMT, the Footsie had lost 51.38 points to stand 0.73 percent lower at 6,987.57. Sentiment has been subdued in today’s session, with investors awaiting the outcome of a meeting between US President Trump and China’s Xi Jinping this weekend.
“Europe is once again falling prey to selling,” Chris Beauchamp at IG commented in a note, adding that the FTSE 100 was “suffering from a bout of early morning weakness, dropping back towards 7,000 after faltering above 7,060 during the week”.
The analyst explained that buyers had stepped in around the 6,980/7,000-point level earlier in the week, so this marked an area of potential support, while below this 6,920 and then 6,840 come into view,” while a move above 7,080 points would open the way to 7,200 points.
Housebuilders lose ground
Housebuilders are also pressuring the Footsie after Nationwide reported that while annual price growth had picked up a little this month, it remained ‘relatively subdued’ at 1.9 percent, compared to 1.6 percent in October.
“Housing market activity continues to struggle to gain any real momentum,” Howard Archer, chief economic advisor to the EY ITEM Club, commented, as quoted by Proactive Investors. “We suspect that the housing market will remain stuck in low gear over the coming months.” Berkeley Group (LON:BKG) is currently leading other blue-chip housebuilders lower, trading 3.02 percent in the red at 3,206.00p.
The FTSE 100 was 0.73 percent down at 6,987.30 points as of 13:11 GMT on Friday, 30 November 2018.