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London stocks edged higher in early trading on Friday, following a positive lead from Asia.
By 0850 BST, the FTSE 100 had risen by 0.4% to 8,412.00.
Richard Hunter, head of markets at Interactive Investor, noted: "With widespread buying interest, the FTSE's year-to-date performance has reached a positive 8.7%, nearing the record levels achieved in May."
Market participants were examining the latest data from Nationwide, which revealed a surprising dip in house prices for August, while the annual rate of increase accelerated to its fastest pace since December 2022.
Month-over-month, house prices fell by 0.2%, reversing a 0.3% increase in July and falling short of expectations for a 0.2% rise. Year-over-year, prices increased by 2.4% in August, up from a 2.1% gain the previous month but below the anticipated 2.9% rise. Prices remain approximately 3% below the all-time highs from summer 2022, according to Nationwide.
The average home price in August was £265,375, down from £266,334 in July.
Nationwide's chief economist Robert Gardner commented: "Despite subdued house price growth and activity compared to historical standards, the market shows resilience given the high-interest-rate environment and elevated house prices relative to average earnings, which complicates deposit savings. If economic recovery continues, housing market activity may strengthen gradually as affordability constraints ease with modestly lower interest rates and earnings outpacing house price growth."
Additionally, data from BRC-Sensormatic IQ showed a slight year-on-year decline of 0.4% in retail footfall across the UK in August. This marks a notable improvement from July's 3.3% drop, suggesting some resilience in the sector despite earlier disruptions from riots.
Footfall on high streets saw a minor decline of 0.3% compared to August 2023, a recovery from the 2.7% decrease recorded in July. Retail parks outperformed other locations, with footfall up by 2.6% year-on-year, an improvement from the previous month's 0.8% decrease. Shopping centres also showed signs of recovery, with foot traffic falling by 1.8%, an improvement from July's 3.9% decline.
Helen Dickinson, chief executive of the British Retail Consortium, remarked: "Footfall was severely affected by violent disturbances early in the month as many avoided shopping destinations. Retail parks experienced increased footfall in the aftermath of the riots, as some consumers continued to steer clear of high streets and shopping centres. By the end of the month, footfall across all destinations improved with warmer weather and summer sales encouraging shoppers to visit their preferred stores."
On the equities front, Burberry (LSE:BRBY) experienced a decline in anticipation of its likely removal from the FTSE 100. Rentokil (LSE:RTO) saw a slight drop as JPMorgan placed the shares on "negative catalyst watch" ahead of its third-quarter results on October 17. Meanwhile, RS Group's (LSE:RS1) shares rose as JPMorgan initiated a "positive catalyst watch" in advance of the capital markets day on September 24.
