Fri, 6th Jul 2018
House price growth in the UK is suck in an awkward dance, according to Jonathan Hopper, the managing director of Garrington Property Finders. The news of slowing growth in house prices led to the FTSE 100 getting off to a muted, but still positive start. The UKs leading index gained 12 points, up to 7,615 as US and Chinese trade tariffs started to take effect.
Meanwhile, monthly data from Halifax showed that UK annual house price growth had remained flat, at 1.8 percent during the month of June, and up by 0.3 percent on an annual basis. House prices had jumped by 1.7 percent in May.
The markets were optimistic, however, as traders looked to the US non-farms payrolls report which is due to be given later in the trading day. The US imposed a 25% levy on Chinese goods, and this took effect at midnight. China retaliated to the levy by imposing similar tariffs on 545 US products, to equal the $34 billion US tariffs. Many analysts, however, feel that the impact of these tariffs has already been priced in to the markets, and that even if Trump were to go as far as imposing $500 billion in import tariffs to penalise China, the short term impact on the market would be minimal.
Meanwhile, the minutes from the Federal Reserve’s meeting show that global trade tariffs could hit the markets quite significantly, and that interest rates could be taken above the neutral level at some point next year.