Must read: mining stocks, BP, house prices

GLOBAL MARKETS

The FTSE 100 has opened higher this morning, thanks to miners which are at the top of the basket. Glencore (LSE:GLEN) is leading the charge, with Anglo American (LSE:AAL), Antofagasta (LSE:ANTO), and Rio Tinto Ordinary Shares (LSE:RIO) all staging impressive gains. This is after China started work on the world’s largest dam in Tibet, pushing iron ore and steel prices to four-month highs. 

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easyJet (LSE:EZJ) is another top gainer thanks to an encouraging quarter for rival Ryanair. In terms of other corporate news, BP (LSE:BP.) has appointed Albert Manifold as its new chairman from 1 September, taking over from Helge Lund. And shares in Oxford Nanopore Technologies (LSE:ONT) are soaring after the company said full-year guidance remains on track. 

Meanwhile, according to the Financial Times, the London Stock Exchange Group (LSE:LSEG) is considering extending trading to 24 hours a day as it looks at various ideas to boost demand for stocks.

And in terms of data, a survey from Deloitte showed that British consumer sentiment dropped by 2.6 percentage points in the second quarter, falling to the lowest level since Q1 2024, adding to the gloomy outlook for the UK. 

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In Japan’s elections over the weekend, the ruling coalition suffered a major defeat, losing its majority in the upper house. But PM Shigeru Ishiba said he plans to remain in the role.

This week, there is plenty for markets to dig into including flash PMIs, a slew of results including fromLloyds Banking Group (LSE:LLOY) and NatWest Group (LSE:NWG) in the UK and Alphabet Inc Class A (NASDAQ:GOOGL) and Tesla Inc (NASDAQ:TSLA) in the United States. Plus, in Europe the European Central Bank will announce its decision on interest rates.

RIGHTMOVE HOUSE PRICES

According to Rightmove, asking prices fell by 1.2% between June and July, down £4,531. That’s the biggest drop for this time of year since these records began in 2001. The average property price now stands at £373,709. Inner London suffered the steepest monthly drop regionally, with prices down 2.1%. This data echoes similar recent figures from Nationwide which also said that house prices have been under pressure lately. 

There was a flurry of sales at the start of the year as buyers rushed to reach completion ahead of the temporary stamp duty tax cut deadline. But since April, demand has dwindled and a buyers’ market has emerged. A combination of robust housing supply and weaker demand means sellers are being forced to cut asking prices to stimulate sales. 

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While the Bank of England is on a downward trajectory for interest rates, borrowing costs remain high with the base rate at 4.25%. Recent economic indicators including GDP, inflation and unemployment also point to a lacklustre picture for the economy. However, the central bank is expected to cut interest rates twice before year-end which could help boost mortgage demand into next year.