U.K. Stocks Fall for a Third Day as RBS, Aviva Decline

U.K. stocks fell, dragging the FTSE 100 (UKX) Index lower for a third day, as investors awaited reports on the U.S. housing market and consumer confidence.

Royal Bank of Scotland Group Plc declined 2.1 percent after Investec Plc recommended that investors sell the shares. Aviva Plc (AV/) dropped 1.1 percent as Exane BNP Paribas lowered its rating on the insurer. Precious-metals producers Randgold Resources Ltd. (RRS) and Fresnillo Plc (FRES) gained at least 4 percent as gold and silver climbed after European equity markets closed yesterday.

The FTSE 100 dropped 10 points, or 0.2 percent, to 6,473.34 at 9:32 a.m. in London, extending this week’s decline to 1.7 percent. It has still rallied 7.4 percent from a low on June 24 as the Bank of England gave forward guidance on interest rates for the first time. The broader FTSE All-Share Index slipped 0.1 percent while Ireland’s ISEQ Index sank 0.9 percent today.

In the U.S., a Commerce Department report at 8:30 a.m. in Washington may show housing starts climbed in July to a 900,000 annualized rate, according to economists surveyed by Bloomberg. They rose at an 836,000 pace in June, the slowest since August 2012. Building permits, which signal construction activity, rose to a 945,000 rate from 918,000 in June, estimates from a separate survey showed.

A separate release will probably show a gauge of consumer sentiment in the world’s largest economy rose to a six-year high in August. The Thomson Reuters/University of Michigan preliminary index climbed to 85.2 from 85.1 in July, according to economists’ estimates.

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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