Equity markets have had some mixed US housing data to digest but in London traders seem to be shrugging off the latest downbeat news out of the world's biggest economy and focusing on signs of stabilisation in its housing market.
Numbers yesterday from the US estate agents' organisation signalled existing home sales increased for the first time in seven months in February as buyers took advantage of a sharp drop in prices. That sent UK homebuilders higher in morning trading and they were loathe to give up gains when less positive data was released this afternoon.
Today came the news that prices were down 3% in the 12 months to January. And those numbers from the Office of Federal Housing Enterprise Oversight coincided with weaker-than-expected consumer confidence numbers out of the US.
While that has left the US again wagering on the prospects of recession, UK stock markets are still sharply higher.
The FTSE 100 opened after the four-day weekend in a buoyant mood,and it is currently up around 3% at 5,661. The slight paring of gains alongside the Dow's move into negative territory was short-lived. The Dow is currently down 0.5% at 12,486.
In particular UK-listed property and construction-related companies are in demand. Housebuilder Taylor Wimpey is one of the biggest risers on the FTSE 100, up 13% at 184.9p. Rival Persimmon is up 11% and building materials supplier Wolseley, hit in recent weeks by fears over demand prospects in a weakening US market, has added 9%.
The renewed interest in property-related stocks is also dominating the FTSE 250, where builder Bovis Homes is up almost 15%, estate agent Savills is up 12%, steel specialists Severfield-Rowen is 8% higher, materials supplier Tomkins is up 11% and homebuilder Redrow is 13% higher.
