Nationwide's latest figures show UK house prices remained stagnant in June, stuck at the same level as May, but annual growth accelerated to 2.2% – a mixed message for the property market. The north-south divide remains stark, with Northern Ireland leading the way in house price increases over the past year.
Despite the flat monthly performance, experts believe falling mortgage rates could spark a recovery in coming months, offering hope to prospective buyers and sellers navigating the economic climate.
The eurozone manufacturing sector just recorded its strongest quarter in nearly four years, thanks in part to easing cost pressures. June's purchasing managers' index from S&P Global slipped slightly to 51.4, but remained above the crucial 50-mark, indicating growth over contraction. Output also rose to a two-month high of 51.7, despite export demand remaining sluggish.
Chris Williamson, chief business economist at S&P Global Market Intelligence, says June's expansion rounded off the strongest calendar quarter for manufacturing production since early 2022. A welcome cooling of cost pressures has contributed to this sustained growth, driven by a sharp drop in oil prices and easing supply chain concerns. However, Williamson cautions that uncertainty remains over the future impact of improved Middle East news on manufacturing performance.
Currency markets are in turmoil as the Japanese Yen plummeted to a 40-year low against the US Dollar, with speculation growing that authorities may intervene to support their struggling currency. The dollar's strength was boosted by rising US government bond yields ahead of crucial jobs data, which will influence the Federal Reserve's interest rate decisions.