European Stocks Are Mixed Following Soft UK Housing Data

European stock markets are mixed, with the DAX managing to move above 11800, but stocks will be struggling to keep above these important levels on a quiet day, with the U.S. on holiday. The FTSE 100 is underperforming amid a fresh bout of Sterling strength, after weak house price data overnight, and Bovis Home shares dropped as the builder said it will build fewer homes this year. Eurozone peripherals, in particular France is underperforming amid ongoing election jitters and outrage over comments by hopeful Macron, which is feared to drive even more conservatives behind Le Pen. The modest gains in Europe followed a largely positive session in Asia. Chinese bourses outperformed and Chinese shares traded in Hong Kong resumed their rally led by banks and automakers. Japanese markets fluctuated and the Nikkei managed a marginal 0.09% gain as the Yen fell back. Australia’s ASX meanwhile dropped slightly as AUD picked up. With the U.S. closed for President’s Day trading is quieter than usual.

UK Housing Prices Slowed in February

UK house price growth was the slowest in nearly four years, according to the Rightmove report on February prices. The year over year comparison fell to 2.3% growth from 3.2% year over year in January. This was the third consecutive month that prices have fallen. The median forecast had been for 2.8% year over year growth in February. The data follows markedly weaker than expected retail sales growth in both December and February, and a sharp contraction in consumer credit in December. The consumer sector is in the spotlight as it has been driving economic growth during recent years.

The UK CBI industrial trends report beat expectations, with the headline total orders reading rising to 8 from 5 in the previous month. The median forecast had been for a dip to a 4 reading. Export orders dipped to a reading of -10 from -9 in January, though business expectations lifted to 33 from 26 in the previous month. Selling prices continued to rise, reaching a reading of 32 from 28 before. Sterling has been little impacted by the data, despite the above-forecast headline.

Oil prices continue to face headwinds. The Baker-Hughes rig count data revealed a 6 rig increase on the week, bringing the total to 597 and up from 413 a year ago. The report marks five-straight weeks of increases.