Annual growth in UK house prices slowed but remained in the double digits, according to the National Building Society. Growth eased back to 10.5% in July from a 17-year lofty of 13.4%. The median home price fell 0.5% per month to £244,229, following rising 0.7% in June.
Robert Gardner, chief economist at Nationwide, said:
The modest decline in July was unsurprising given the significant gains recorded in recent months. In fact, home prices rose an average of 1.6% per month during the April-June period — more than six times the average monthly acquire recorded in the five years leading up to the pandemic.
It’s also conceivable that reducing the stamp duty exemption in England has taken some of the heat off the market. The zero price range limit dropped from £500,000 to £250,000 at the end of June (it will return to £125,000 at the end of September. This provided a powerful incentive to conclude home purchases prior the end of June, especially for higher-priced properties for those For those buying property over £250,000, the greatest stamp duty was reduced from £15,000 to £2,500 following the end of June.
He said land registry data indicate that lofty-priced real estate has been driving the robust housing market since the outbreak of the pandemic. Over the former six months, sales that include detached and semi-detached homes have increased while the proportion of apartments has fallen dramatically, as people have switched to working from home and looking for larger properties.
The survey of 2,000 people showed Germans were becoming more willing to spend, but took a less confident view of the economic outlook compared to the previous month, amid rising numbers of Covid-19 infections. After more than two months of decline, cases are on the rise again since beforetime July, mainly due to the spread of the more contagious delta type. About 60% of Germans have had their first Covid-19 vaccine and half are fully vaccinated.
As Chinese state financial media called for silent, the country’s stock markets were volatile, with the Shanghai Composite Index down 2% prior paring losses to 0.46%. Hong Kong’s Hang Seng reversed earlier losses to post a belated 1.3% recovery, following sharp declines of more than 4% on Monday and Tuesday. Shares of Hong Kong internet giant Tencent fell 3.5% and Alibaba shares lost 3%.
Analysts at Bespoke Investment Group noted that there was only one more period in 2011 when the Hang Seng Index fell more than 7.5% for two days, CNBC reported. Since then, they have written:
There hasn’t been a single two-day drop since the financial crisis that has exceeded the volume of the former two days.
- 7.45am GMT: France Consumer Confidence for July (Expected: 102)
- 9:00 GMT: Consumer and business confidence in Italy for July
- 12 noon GMT: US mortgage applications for the week of July 23
- 1.30pm GMT: Inflation in Canada for June (expected: 3.2%)
- 1.30pm GMT: US trade in goods for June
- 7 pm GMT: US Federal Reserve interest rate decision
- 7.30pm GMT: US Federal Reserve press conference