Europe open: Stoxx in Xmas spirit, but Vistry profit warning hits housing shares.

European shares were up at the open on Christmas eve, although housing stocks were under pressure after a third consecutive profits warning from Vistry, sending shares in the troubled UK housebuilder plunging.

Source: Sharecast

The pan-European Stoxx 600 index was up 0.25% at 504 points in early deals with most major bourses in the green. Germany’s DAX was down 0.18%.

With volumes expected to be light as markets closed early for the holiday break and no corporate news of note, the profit warning from Vistry stood out like Rudloph the Reindeer’s nose.

The company said it now expected adjusted profit before tax for the year to December 31 to be around £250m, compared with previous guidance of £300m, citing delays to expected year-end transactions and completions, while it also pulled out several unattractive deals.

That sparked a sell-off of its shares, with almost 20% wiped off the value of the company in early trade. Sector peers, Persimmon, Bellway, Taylor Wimpey, Berkeley, Barrat Redrow were all lower.

Reporting by Frank Prenesti for Sharecast.com

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