The FTSE 100 experienced a modest rise on Tuesday, following an impressive 7.2% increase in the first half-year period. Unexpectedly, UK house prices declined by 0.8% in June, with annual growth slowing to 2.1%, which was below market expectations. This unanticipated drop negatively impacted homebuilders, with companies such as Barratt Redrow experiencing a 1% decline, and Persimmon and Taylor Wimpey also facing poor performance.
Conversely, Sainsbury’s saw nearly a 2% increase in its stock after reporting stronger-than-expected quarterly results. The retailer's like-for-like sales, excluding fuel, rose by 4.9%, with grocery sales climbing by 5%. Sainsbury’s reiterated its full-year financial outlook, although it noted that performance would be weighted towards the second half of the year.
In mergers and acquisitions activity, Barclays emerged as the top bidder in the competition to acquire TSB, vying with Santander, with both banks proposing offers in the vicinity of €3 billion. In another development, Aviva's acquisition of Direct Line, valued at £2.6 billion, received approval from competition regulators, paving the way for the formation of the UK's largest motor insurer.
