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London stocks edged lower in early trading on Monday as the market anticipates a busy week with key interest rate announcements from the Bank of England, the US Federal Reserve, and the Bank of Japan.
At 08:30 BST, the FTSE 100 was down 0.1% at 8,265.45.
Richard Hunter, head of markets at Interactive Investor, highlighted the significance of the Federal Reserve's meeting on Wednesday. While a reduction from the Fed is anticipated, the extent remains uncertain. Current economic data suggests a 0.25% cut, but traders are also weighing the possibility of a more substantial 0.5% reduction. The market has factored in a total of 1% worth of cuts by year-end, which may temper the impact of Wednesday’s decision.
Regarding the Bank of England, no rate changes are expected following last month’s cut. However, retail sales and inflation data might provide insights into the Monetary Policy Committee’s next steps, which are not projected to occur until November at the earliest.
In the housing sector, recent research indicated a strengthening UK market in September. According to Rightmove's latest house price index, average new seller asking prices rose by 0.8% this month, double the long-term average, with a 1.2% increase year-on-year. The national average asking price now stands at £370,759. The number of agreed sales also surged by 27%, and new sellers increased by 14% year-on-year. The number of homes available per estate agent has reached its highest level since 2014.
Autumn typically sees heightened activity in the housing market, but Rightmove noted an early start this year. Tim Bannister, director of property science, attributed the increased activity to a rebound in buyer and seller engagement, buoyed by recent market improvements. However, he cautioned that the momentum might wane if new uncertainties arise, such as high mortgage rates and the upcoming Budget on October 30.
In equity markets, Phoenix Group (LSE:PHNX) declined after reporting a 15% rise in operating profits for the first half and withdrawing the sale of its SunLife division due to market uncertainties. Close Brothers (LSE:CBG) fell as CEO Adrian Sainsbury took temporary medical leave, with Group Finance Director Mike Morgan stepping in.
On the upside, TI Fluid Systems saw a boost after ABC Technologies expressed continued interest in acquiring the company despite previous rejected offers. Playtech (LSE:PTECH) also rose following an announcement of anticipated earnings slightly ahead of expectations. Marks & Spencer (LSE:MKS) gained after RBC Capital Markets raised its price target and estimates for the company.
