Home Buiders and Weak Pound Contribute to Gains, U.K. Shares Jump Higher

U.K. shares advanced on Wednesday, paring losses after opening in the red. The gains were supported by shares of home builders, the reversal into positive territory of oil producers’ equities and a drop in British Pound.

The FTSE 100 added more than 0.5 percent to trade around 7,539.00 with shares of oil producers rebounded higher even oil prices inched lower. Shares of BP PLC added 0.02 percent while those of Royal Dutch Shell PLC jumped nearly 0.5 percent.

House builders dominated the overall performance, occupying top spots among the index’s gainers. Shares of residential property developer Bellway jumped over 4 percent after company reported a rise in orders for its homes, which was supported by robust market conditions. Rival Persimmon advanced 1.55 percent while Taylor Wimpey rallied more than 2 percent. Barratt Developments’ equities also surged, adding 2.35 percent.

The British Pound traded lower after labor-market data showed the average earnings index rose by 2.1% in the three months to April, missing forecasts for a 2.4% increase. The Office for National Statistics also reported that claimant count increased by 7,300 in May. well below expectations calling for a gain of 20,300 people.

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