The FTSE 100 (^FTSE) and European stock markets displayed mixed performances on Friday, as UK house prices surged by 0.7% in January, reaching a new all-time average high. According to the latest figures from Halifax (LLOY.L), the average property price now stands at £299,138, marking a 3% increase compared to the same period last year. This follows a minor 0.2% decline in December.
The record-breaking house prices come just a day after the Bank of England announced its first interest rate cut of the year, a move widely seen as a boost to the UK housing market.
Market Reaction and Key Drivers
Amanda Bryden, head of mortgages at Halifax (LLOY.L), attributed part of the rise in house prices to first-time buyers rushing to complete transactions before the stamp duty relief expires in April. This tax relief extension was confirmed in Rachel Reeves' October budget. Despite broader economic concerns, Bryden remains optimistic about the housing market, citing resilient indicators and sustained demand.
On the macroeconomic front, investors are keeping a close watch on the US non-farm payrolls report, a key measure of economic health. The latest data is expected to show an addition of 169,000 jobs last month. Max McKechnie of JP Morgan noted, “Today’s data is not expected to show the kind of slowdown that would force the Fed’s hand. While payrolls are forecast to moderate after January’s bumper print, the anticipated 170,000 jobs are still more than enough to keep the Fed on hold for now.”
The payrolls report for January is set to be released at 1:30 PM GMT, alongside the latest figures on unemployment rates and average earnings.
Stock Market Overview
London's benchmark FTSE 100 (^FTSE) was down 0.3% in early trading, reflecting investor caution amid mixed economic signals. Meanwhile, Germany's DAX (^GDAXI) rose 0.1%, while the CAC (^FCHI) in Paris remained flat. The broader pan-European STOXX 600 (^STOXX) was also relatively unchanged.
Across the Atlantic, Wall Street futures pointed to a negative start, with S&P 500 futures (ES=F), Dow futures (YM=F), and Nasdaq futures (NQ=F) all trading in the red.
Currency Market Update
The British pound edged 0.2% higher against the US dollar (GBPUSD=X), trading at 1.2463, reflecting modest strength in the currency market.
As global markets react to shifting economic conditions, traders and investors will continue to monitor developments closely, particularly with key US employment data and central bank decisions shaping the near-term outlook.
