FTSE 100 seen 1.2% lower after US markets slide, crude oil above $90
07:19 , Graeme Evans
London’s FTSE 100 index is set to fall by about 1.2% after Wall Street shares last night slumped on fears that US interest rates will stay elevated for longer.
The sight of Brent Crude above $90 a barrel contributed to the worries that persistent inflation pressures will delay the hoped-for summer cut in rates.
The Dow Jones Industrial Average fell 1.4% and the S&P 500 index by 1.2%, leaving US markets on course for their worst week since October. The VIX index of volatility also jumped to a five-month high.
IG Index is reporting that futures markets expect the FTSE 100 index to decline by almost 100 points to 7878. The top flight yesterday finished within sight of a record high, having risen 0.5%.
The selling comes ahead of today’s release of US non-farm payrolls, which will offer fresh clues about the interest rate outlook.
Deutsche Bank economists are forecasting growth in payrolls of 200,000, which compares with the previous month’s reading of 275,000. The unemployment rate is seen ticking down a tenth to 3.8%.
Halifax: UK house prices slip in March, but up from last year
07:09 , Daniel O’Boyle
UK house prices declined y 1% during March, but are still slightly up year-on-year, according to Halifax.
The latest Halifax House Price Index showed the average price was £288,430. That’s down 1% from February but up 0.3% from last March.
In London, prices grew slightly faster year-on-year, by 0.4% to £539,917.
Kim Kinnaird, Director, Halifax Mortgages, said: ““That a monthly fall should occur following five consecutive months of growth is not entirely unexpected, particularly in view of the reset the market has been going through since interest rates began to rise sharply in 2022. Despite this house prices have shown surprising resilience in the face of significantly higher borrowing costs.”
Recap: Yesterday’s top stories
06:36 , Simon Hunt
Good morning from the Standard City desk.
For the unfashionable over-50 crowd who like Superdry clobber the idea that it might disappear altogether seems more than a shame.
No one is mistaking me for a clothes horse, but it does nice fitting chinos and jackets that are smart enough to work anywhere.
When Superdry floated on the stock market in 2010 at 500p it was valued at £395 million, it had no debt, and co-founder Julian Dunkerton banked £80 million and had stock then worth another £130 million.
Since the stock is now about 10p and the company is worth £10 million that valuation now looks absurd.This never was Dunkerton’s fault – he hired bankers to get him a price, that’s the one they got. Then he handed over to other management, who vastly exaggerated the possibilities Superdry had of becoming some sort of global lifestyle brand. (The price point is different, but see also: Aston Martin.)
The pity about brands like Superdry is that they are stuck in the squeezed middle.
At the cheap end, Primark soars. At the top end, Burberry does well.
In the middle, Superdry, Ted Baker and the rest have a really rough game to play.
Their best bet is to be bought out by (shudders) Sports Direct, now Frasers Group, with the kit downgraded and sold for cheap.
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Here’s a summary of our top headlines from yesterday:
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Co-op shows faith in mutual model with target for 8 million members by 2030 as the total passes 5 million, amid a doubling in the number of sign-ups.
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Bet365 fined £582,000 – less than a day’s pay for CEO Denise Coates – after gambling watchdog found insufficient player protection and money laundering checks
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Country Life publisher Future says its revenue is growing again, driven by Go Compare, which offset effects of “challenging” digital advertising market
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Markets: Gold at record $2300 an ounce as Fed boss sticks to line that rates likely to fall this year. FTSE 100 up 9.7 points at 7947.
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CAB payments gets a payments license to operate in the EU, raising hopes it can turn around its fortunes after a catastrophic IPO last year
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And…why it’s too early to judge the success of the Future Fund
