UK property shares have been hit by an unexpected rise in inflation on the other side of the Atlantic.
As the London Stock Exchange closed last night, the FTSE 100 was down by 1.2%.
But its real estate constituents had fared worse. SEGRO fell 4.29%, Unite Group fell 3.83%, British Land dropped by 3.07% and Landsec by 2.7%. Housebuilders were also hit, with Persimmon dropping 3.92%, Barratt by 3.83%, Taylor Wimpey by 3.62% and Berkeley by 2.1%.
A further hike in US interest rates is now expected.
Money markets now see a four in five chance of a 75 basis point increase in rates and a one in five chance of a 100bps rise at the Fed’s two-day meeting next week. Rates are expected to peak at about 4.28% in March 2023.
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