London pre-open: Stocks seen up as investors mull house price, manufacturing readings

London stocks were set to rise at the open on Monday as investors digested the latest readings on house prices and manufacturing, and eyed a UK inflation print and a policy announcement from the Federal Reserve on Wednesday.

The FTSE 100 was called to open around 10 points higher.

Investors were mulling data showing that house prices jumped in March as confidence in the UK housing market continued to recover.

According to the latest House Price Index from Rightmove, national average asking prices jumped 1.5% in March.

That was an improvement on February’s 0.9% increase, and above the historic average increase in March of 1.0%. It was also the biggest rise for 10 months.

Year-on-year, prices increased 0.8%. They rose 0.1% in February on the same basis.

The average asking price is now £368,118.

Agreed sales, meanwhile, were up 13% year-on-year. Buyer demand was up 8%, led by larger homes and London, which are less sensitive to mortgages rates, Rightmove noted.

Tim Bannister, Rightmove’s director of property science, said: "March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway.

"However, the stronger-than-usual price growth this March indicates that new sellers are feeling much more confident - with some perhaps being over-optimistic - that there is enough buyer activity and affordability in their local market to achieve a higher price."

However, Bannister also sounded a note of caution. Asking prices, he said, still remained £4,776 below their May 2023 peak, while elevated interest rates were continuing to stretch affordability for many buyers.

Elsewhere, a survey by Make UK and the accountancy firm BDO showed that confidence levels among UK manufacturers remain "robust" despite a subdued economic outlook.

The quarterly Manufacturing Outlook report, which surveyed 326 companies between January and February, found that recruitment and investment intentions were "fairly strong" in the first quarter even though the general economic picture was "flat".

Recruitment intentions remained at +12% on balance, rising to +14% next quarter, while investment intentions increased from +10% in the fourth quarter to +15%.

"Apart from the start of the pandemic, employment balances have been at elevated levels since the EU referendum, indicating that skills shortages and vacancies in manufacturing are now structural," the survey said.

In corporate news, electrical retailer Currys lifted guidance as it reported stronger-than-expected sales since the busy Christmas period.

The company, which also confirmed that it no longer faced takeover threats from Elliott Advisors and China’s JD.com, said pre-tax profit was now expected to be at least £115m, compared with previous guidance of £105-115m and would start the year with positive net cash.

Haleon said that Pfizer plans to sell around 630m shares in the company in a public offering.

The sale will reduce Pfizer’s stake from 32% to approximately 24%.

Pfizer had said in May 2023 that it was planning to cut its stake in Haleon in a "slow and methodical" manner.

Bytes Technology Group updated the market on the circumstances surrounding the resignation of its former chief executive Neil Murphy, confirming that it followed a voluntary request for information from the Financial Conduct Authority (FCA) around undisclosed trading of the company's shares.

At the same time, it flagged a record financial year with double-digit growth in gross profit and adjusted operating profit, with gross invoiced income growing over 25%.

The company maintained confidence in its ability to sustain growth, supported by vendor partnerships, customer relationships, and employee dedication.