By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks declined on Tuesday on the
back of weaker-than-expected construction data, while fresh
home-price data raised uncertainty about the housing market.
The FTSE 100 index dropped 0.4% to close at 6,836.30, marking
the lowest level since May 23.
The benchmark opened in negative territory, in line with the
rest of Europe, but nudged a leg lower mid-morning after the U.K.
construction purchasing managers' index for May fell short of
forecasts. The Markit/CIPS PMI for the construction sector dropped
to 60 in May, from 60.8 in April. That was below the 61 level
expected by analysts and marked the slowest pace of expansion since
October 2013.
Additionally, data from mortgage lender Nationwide showed
housing prices in May rose more than expected year-on-year.
However, the month-on-month increase was lower than in April.
Farhan Ahmad, trader at TradeNext, said in a note that this monthly
slowdown "could be the first signs of a broader contraction."
Home builders were among major decliners in London after the
data. Shares of Barratt Developments PLC dropped 1.8%, Taylor
Wimpey PLC lost 2%, and Persimmon PLC erased 1.2%.
Grocery firms were also in the spotlight after Kantar published
data on U.K. supermarkets. The research company said Tesco PLC's
(TSCDF) market share fell to 29% from 30.5% in the 12 weeks to May
25, according to media reports, sending the shares 1.5% lower.
Outside the main index in London, shares of Foxtons Group PLC
sank 6.6% after the real-estate firm said Chief Executive Michael
Brown would step down for personal reasons.
On a more upbeat note, shares of Wolseley PLC climbed 2.9% after
the distributor of heating and plumbing products reported strong
growth in the U.S. and the Nordic countries during the third
quarter
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