Banking

FTSE 100 drops as recession fears hit markets

ggood morning.

There are warning signs that the UK property boom may finally be coming to an end.

The average house price rose 1.1% in April to £286,079, according to Halifax. This is a new record and the 10th consecutive month of growth.

However, growth slipped to 10.8% on an annual basis, from 11.1% the previous month.

Halifax warned that rising interest rates and runaway inflation would soon dampen demand, and predicted slower growth by the end of the year.

5 things to start your day

1) Rising unemployment and soaring inflation: Britain’s gloomiest economic forecast for a decade Britain’s economy will be hampered by higher borrowing costs by the Bank and cuts in fiscal support by Chancellor Rishi Sunak

2) Landlords clash with developers to tackle ‘generational rent’ Developers warn planned reforms will spell the end of High Street

3) Britain faces recession and 10% inflation as interest rates rise Grim predictions on growth and unemployment as Bank raises rates to 1%

4) Nadine Dorries will continue the competition crackdown on big tech Culture Secretary launches Digital Markets Unit with power to impose multi-billion pound fines

5) Climate change crisis will ‘eclipse’ cost of living, says Mark Carney Former Bank of England governor says governments must seize the moment and move away from fossil fuels

What happened overnight

Asian stocks fell to their lowest level in seven weeks and the dollar held firm as investors around the world avoided riskier assets on fears that rising US interest rates and China’s strengthening of its zero-Covid policy does not harm growth harshly.

MSCI’s broadest index of Asia-Pacific stocks outside Japan lost 2.7% and fell to its lowest level since March 16, the day Chinese Vice Premier Liu He pushed shares higher in pledging to support markets and the economy.

The Japanese Nikkei bucked the trend, rising 0.6% as it returned from a three-day vacation. Chinese blue chips lost 2%, the Hong Kong benchmark lost 3.4% and the Chinese yuan fell to an 18-month low in both onshore and offshore markets.

coming today

  • Business : Apax Global Alpha, Beazley, International Consolidated Airlines Group (temporary); InterContinental Hotel Group, Spirent Communications (commercial statement)
  • Economy: Building PMI (UK)non-agricultural payroll (WE)average weekly earnings (WE)unemployment rate (WE)