Open Europe: Shares drop as UK home builders strike with siding bill
European stocks started the week on a muted mood, with UK homebuilding stocks falling following the UK Government’s announcement to pay £ 4bn for the removal of coatings dangerous.
The pan-European Stoxx 600 index fell 0.28% in first trades, with all regional exchanges down.
Investors will look at US inflation figures later in the week and the testimony of US Federal Reserve Chairman Jerome Powell during his Senate nomination hearing.
“The (inflation) data is important because investors are watching closely for signs of whether inflation is still at a point where it can be controlled with monetary policy tools or if the Fed has fallen behind in combating. against rising consumer prices, “said Avatrade analyst Naeem Aslem.
In the fairness news, home builders were in disgrace after the UK government finally decided to help apartment owners potentially responsible for massive bills remove dangerous coatings from their buildings in the wake of the London tower fire in 2017 that killed 72 residents.
The discovery that apartment buildings across the country were covered in flammable siding led to a row between the government, developers and homeowners over who should foot the bill for the move.
It was widely expected that the government would order companies on Monday to pay for the removal of coatings from buildings between 11 and 18 meters high. Homeowners were previously expected to incur costs of up to tens of thousands of pounds.
Actions in Barratt Developments, Bellway, Taylor wimpey and coating manufacturer Kingspan were all lower on the news.
Elsewhere, shares in the Swiss drug maker Idorsia soared after the company said it received approval from the U.S. Food and Drug Administration for its treatment of insomnia in adult patients.
French technology consulting company Atos collapsed to the Stoxx low with a 16.6% drop after the company issued its second earnings warning in seven months.