Markets lower amid renewed rates concerns, UK house prices slump for a fourth month in a row and Card Factory lifts guidance

“The FTSE 100 started on the back foot after mixed trading in Asia as investors react to the potential for further rate hikes in the US,” says AJ Bell Investment Director Russ Mould.

“Officials at the Federal Reserve are suggesting they are not yet done in their battle with rising prices. Having been slow to respond to what they believed was transient inflation in 2021, it seems central banks like the Fed are in no mood to be complacent.

“US jobs data which showed earnings rising faster than expectations on Friday will only strengthen this resolve.

“The big move higher in UK rates continues to have a dampening effect on the UK housing market. Figures from Halifax unsurprisingly showed a fourth straight month of declining prices. With mortgages becoming less affordable it is proving increasingly difficult for people to get a leg up on the property ladder or even join the ladder in the first place.

“Housebuilder Taylor Wimpey was among the top fallers on the FTSE 100 this morning. The sector faces a very different environment today after years of strong property prices, cheap mortgages and state support for first-time buyers.”

Card Factory

“It seems Britons are still very attached to the idea of sending a greetings card to mark special occasions and that’s reflected in a very upbeat trading update from Card Factory.

“Card Factory has been consistently raising earnings expectations of late so it must be doing something right in what is a very tricky retail environment.

“The company’s offering is perfectly pitched for cost conscious consumers – and while some of this market has migrated online there are still plenty of people who want to go into a shop and peruse the cards while picking out extras like birthday balloons and party poppers.

“The potential retrenchment of privately-owned Clintons – reported to be considering closing around 20% of its store estate – will not be unhelpful to Card Factory’s competitive position.”

These articles are for information purposes only and are not a personal recommendation or advice.