FTSE 100 moves higher, Raspberry Pi soars on UK IPO and Conservatives’ housing pledge boosts housebuilders, DIY retailers and estate agents

“Positive market reaction to GSK saying it would appeal a recent court decision around its Zantac product helped to lift the FTSE 100,” says Russ Mould, Investment Director at AJ Bell.

“The index nudged 0.2% ahead thanks to strength in GSK, AstraZeneca and Unilever. Similar gains were recorded in other parts of Europe and mirrored the performance of Wall Street yesterday.

“More stable market conditions will be welcomed by investors who have had their patience tested in recent weeks. Despite several central banks starting the journey to cut interest rates, expectations for when the Federal Reserve and Bank of England will get the scissors out keep being pushed back.

“We knew in January that 2024 was a big year for elections but political uncertainty has still managed to pile onto market worries. This week is proving to be a whirlwind for anyone trying to get their head around European politics and the show has only just begun.

“Raspberry Pi made a storming debut on the UK stock market with its IPO priced at the top end of the range and its shares jumping 39% in the first half hour of trading. UK tech stories are few and far between on the London Stock Exchange so let’s hope the success of Raspberry Pi attracts more peers in the tech sector to the market.”

Tory Manifesto

“A lot of people want to get on the property market but are struggling to do so when interest rates are high and housing supply is tight which props up prices. It’s no wonder the Conservatives have put housing on their priority list for the election, with several measures unveiled as part of their strategy to try and stay in power on 4 July.

“A stamp duty cut for some first-time buyers, a new Help to Buy scheme, and tax cuts for landlords who sell to tenants all provide a tailwind for companies on the stock market linked to residential housing.

“Housebuilders including Persimmon and Taylor Wimpey, DIY groups such as Wickes and B&Q owner Kingfisher and estate agents including Foxtons all saw their shares move higher on the news. The big unknown is whether the Conservatives will be able to action these initiatives given they are lagging behind Labour in the polls.

“Anything Labour says around housing is more likely to move the dial for these stocks when its election manifesto is released later this week.”

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