Nationwide house price index, European markets up, Harland & Wolff shares suspended

House prices rise in June, Nationwide says, but market remains ‘subdued’

07:49 , Simon Hunt

Closely watched data from one of the UK’s biggest mortgage lenders shows house prices rose in June.

The 0.2% month-on-month increase was lower than the 0.4% recorded in May, but the annual growth rate rose from 1.3% to 1.5%.

The average house price in June rose to £266,604, up from £264,249 in May.

Prices are therefore about 3% lower than the record level reached in the summer of 2022.

According to Robert Gardner, Nationwide’s chief economist, mortgage transactions fell by a quarter “reflecting the impact of higher borrowing costs.”

“While earnings growth has been much stronger than house price growth in recent years, it has not been enough to offset the impact of higher mortgage rates, which are still well above the record lows seen in 2021 following the pandemic,” he added.

The FTSE 100 and European stock exchanges recorded gains, and data from China exceeded expectations

07:22 , Graeme Evans

European stocks are rising after the first round of elections in France gave the National Rally a smaller-than-expected lead.

The Paris-based CAC 40 index is forecast to rise more than 2% after a recent series of losses, while the euro also strengthened overnight.

The London Stock Exchange is poised to start the new quarter with a bang, with the FTSE 100 index set to open at 8,210, up 46 points.

Asian markets are also in positive territory as continued expansion in China’s manufacturing sector pushed the June PMI reading to 51.8, beating expectations.

US markets ended lower on Friday as weaker technology stocks dragged the S&P 500 down 0.4% and the Nasdaq down 0.7%.

Harland & Wolff shares suspended

07:16 , Simon Hunt

Shares in the shipbuilding company Harland & Wolff are to be suspended after the company failed to publish its annual results on time.

The company said the delays in results were due to “ongoing discussions with auditors regarding revenue recognition in connection with the multi-year and complex nature of certain contracts under which the Company operates.”

The story continues

It said the annual report was due to be published in the week commencing July 8, more than a week behind the deadline under AIM regulations, and that the shares would be suspended until then.

Summary: Friday’s top headlines

06:44 , Simon Hunt

Good morning from the Standard City office.

The prospect of Shein’s London IPO could bring a market value of £50 billion, which is said to be a tasty amount for a market that has been starved of trading shares for several years. But even if the allegations against Shein remain unconfirmed, the feeling that all is not well will not go away.

Every time a city decides to go after a big rig, two things happen. 1) She looks desperate. 2) The transaction never takes place anyway.

In 2019, the London Stock Exchange relaxed regulations to allow Saudi Aramco to go public.

Ultimately, as seemed obvious, Aramco did not agree to even the more lenient rules and still found itself on Riyadh’s list.

In 2023, London politicians were pursuing microchip giant Arm. Despite lobbying from three prime ministers, Arm did what it had always intended to do and chose New York.

A better approach is to play the long game. To say that the rules exist for a reason and they cannot be bent for anyone.

To say that London is a special members’ club that keeps the bullies away. If you can’t follow the rules, you can’t join.

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Here’s a recap of Friday’s top headlines:

And in City Spy: