Michele Maatouk Sharecast News
30 Aug, 2024 07:39 30 Aug, 2024 07:39

London pre-open: Stocks to nudge up as investors mull Nationwide data

dl city of london square mile financial district generic 01
Sharecast / helloiamtugce via Pexels

London stocks were set to nudge higher at the open on Friday following a positive session in Asia.

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

There were no corporate releases of note out, but investors will be mulling the latest data from Nationwide, which showed that house prices unexpectedly dipped on the month in August, but rose at their fastest annual pace since December 2022.

On the month, prices were down 0.2% following a 0.3% increase in July, and versus expectations for a 0.2% increase.

On the year, meanwhile, house prices picked up 2.4% in August following a 2.1% gain the month before and versus expectations for a 2.9% jump. Prices are still around 3% below the all-time highs recorded in the summer of 2022, Nationwide said.

The average price of a home stood at £265,375 in August compared to £266,334 in July.

Nationwide chief economist Robert Gardner said: "While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).

"Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth."

contador