Daily Market Report - 27/08/2014

British banks approved fewer home loans last month than they did in June, as tighter rules on mortgage lending introduced late in April took some of the heat out of the housing market, industry data showed on Tuesday.

The British Bankers' Association said its members approved 42,792 loans for house purchases in July, down from June's three-month high of 43,180 and below an average in the first three months of 2014 of just under 47,000.

Mortgage approvals are still about 12 percent higher than July last year, though the amount of net new mortgage lending in July - some 821 million pounds - was the lowest since January.

The strong pound has also taken its toll on some of the UK's larger companies with Logistics group Bunzl , a member of the  FTSE 100 reporting that their half year revenues have been held back by Sterling's gains over the past year.   

The Dollar made some ground during yesterday’s session after US consumer confidence reached its highest point in nearly seven years, boosted by strong job gains. The optimism suggests that Americans will be more likely to spend in the months ahead, an important boost to the economy.

Consumer spending drives about 70 percent of U.S. economic activity as enthusiastic households are more likely to open their wallets. The survey found that Americans' outlook on the job market brightened considerably, many indicating there were plentiful employment opportunities. 

Orders for durable goods also jumped up by 22.6% for the month of July, driven mainly by a 318% rise in aircraft orders. Boeing's large order of planes was the primary cause of the increase. 

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