UK house prices experienced a modest uptick in April, according to data from Nationwide, as the market continues to navigate a complex economic landscape. The average house price rose by 0.3% month-on-month, with annual growth steady at 1.2%. This comes amid ongoing affordability pressures and uncertainty surrounding interest rates.
NatWest Reports Strong Quarterly Profits
NatWest Group announced a 15% increase in first-quarter profits, driven by higher interest income and cost-cutting measures. The bank reported pre-tax profits of £1.8 billion, surpassing analysts' expectations. However, NatWest also set aside additional provisions for potential loan defaults, reflecting caution over the economic outlook.
Oil Prices Surge on Iran War Fears
Oil prices climbed sharply on Friday, with Brent crude rising above $85 per barrel, as geopolitical tensions escalated following reports of a potential conflict involving Iran. Traders are pricing in the risk of supply disruptions from the Middle East, a key oil-producing region. The spike in oil prices adds to inflationary pressures globally.
FTSE 100 Dips Amid Mixed Sentiment
The FTSE 100 index fell by 0.4% in early trading, dragged down by energy and mining stocks. While oil companies benefited from higher crude prices, broader market sentiment was dampened by concerns over rising costs and slowing economic growth. Investors are also awaiting the Bank of England's next policy decision, with expectations of a rate hold.
Bank of England Holds Rates Steady
The Bank of England maintained its key interest rate at 4.5% in its recent meeting, as policymakers balance inflation risks against slowing economic activity. The decision was widely expected, but the accompanying statement highlighted persistent price pressures in the services sector. Markets now anticipate a potential rate cut later in the year.
Business Live: Key Developments
In other news, the UK's trade deficit narrowed in March, while consumer confidence showed signs of improvement. Meanwhile, the US dollar strengthened against major currencies on safe-haven demand amid geopolitical uncertainties. The pound sterling traded at $1.28, slightly down on the day.
Looking ahead, investors will focus on US jobs data due later today, which could provide further clues on the Federal Reserve's monetary policy path. The ongoing earnings season also remains in focus, with major companies reporting results.
