Shares digital

A trading update last week by Taylor Wimpey, the house builder seems to have reassured investors about the company’s fate. Full year results will be in line with expectations despite ‘exceptionally challenging’ conditions in the US, where selling prices slumped.

However, both the 14% UK housing margin target and the savings targeted from the merger should be achieved. The shares gained 11% to 196p at the start of this week despite the huge losses seen elsewhere on the market.

The rally came as traders correctly predicted the dramatic 0.75 percantage point reduction in US interest rates announced Tuesday and rushed to cover short positions.

Shares says: Resist the temptation to buy cheap property companies for now.

by: Carlo Svaluto