FTSE 100 opens down 2.2% by 144 to 5757 points as data shows slump in UK housing market – after government put brakes on lockdown easing and Trump threatened $1trillion tariffs on China
- The FTSE 100 of Britain’s biggest firms opened down by 144 or 2.2 per cent
- Newly released figures show house prices were on the up prior to the pandemic
- Europe’s stock markets also sank further as the global economy suffered
London markets opened down by 2.2 per cent this morning as data showed a slump in the UK housing market.
The FTSE 100 index of Britain’s biggest firms was down by 144 to 5757 points, wiping out much of the strong gains it had seen this week after signs of several countries easing lockdown measures.
It comes after Boris Johnson said he would outline a ‘comprehensive plan’ next week on how to get the economy moving, but lockdown restrictions currently remain in place.
Newly released figures by building society Nationwide today showed that house prices were on the up, but the pandemic has brought the industry to a shuddering halt.
Robert Gardner, Nationwide’s Chief Economist, told Property Reporter: ‘In the opening months of 2020, before the pandemic struck the UK, the housing market had been steadily gathering momentum.
The FTSE 100 index of Britain’s biggest firms was down by 144 to 5757 points, wiping out much of the strong gains it had seen this week after signs of several countries easing lockdown measures
‘Activity levels and price growth were edging up thanks to continued robust labour market conditions, low borrowing costs and a more stable political backdrop following the general election.
‘But housing market activity is now grinding to a halt as a result of the measures implemented to control the spread of the virus, and where the government has recommended not entering into housing transactions during this period.
‘Indeed, a lack of transactions will make gauging house price trends difficult in the coming months. Our ability to produce the index in the months ahead will depend on there being sufficient transactions which are representative of the wider housing market.
Oil prices jumped on Friday, extending the previous session’s gains, buoyed by a lower-than-expected gain in U.S. crude inventories and the start of output cuts in a bid to offset a slump in fuel demand triggered by the coronavirus pandemic.
A woman wearing a face mask walks past a board at the Hong Kong Stock Exchange today
The domestically focussed mid-cap index fell 1.3%, as President Trump said late on Thursday his hard-fought trade deal with China was now of secondary importance to the pandemic, with his administration crafting retaliatory measures over the outbreak.
British Airways operator IAG shed another 2.6% as details of its plans to cut staffing, including a quarter of its pilots, and weather the collapse in air travel under the coronavirus continued to seep out.
Europe’s stock markets sank further on Friday on mounting evidence that the global economy is reeling from the devastating coronavirus crisis, dealers said.
Frankfurt’s DAX lost 2.2 percent 10,861.64 and the Paris CAC 40 shed 2.1 percent to 4,572.18, compared with the closing levels on Thursday.