Market Outlook: US Shares Rise, China Activity Slows

Market Outlook: US Shares Rise, China Activity Slows

US Markets on the Rise

Wall Street futures are pointing higher, and the FTSE 100 index is set for a steady start after US legislators successfully averted a damaging government shutdown.

This last-minute funding agreement extends the deadline until 17 November, providing traders with an opportunity to shift their focus back to the US economy.

This shift comes after Friday’s Federal Reserve’s preferred measure of inflation indicated a decline in price pressures.

October Optimism

Following the worst month for US markets this year, traders are anticipating that key benchmarks will open October on a positive note.

The FTSE 100 index outperformed Wall Street in September, with CMC Markets predicting a rise of six points to 7614 at the morning’s opening bell.

China’s Economic Activity

While the Hong Kong stock market remains closed for the Golden Week holiday, survey data released yesterday revealed a decline in China’s composite PMI.

This index, which measures both the manufacturing and services sectors, dropped to 50.9 from 51.7 in August.

Article 2 – “UK House Prices Remain Stagnant in September, Down 5.3% YoY”

UK House Prices Steady

House prices in the UK showed no significant change in September, remaining flat month-on-month.

However, they continue to experience a year-on-year decline of 5.3%, according to the Nationwide House Price Index.

This outcome defied expectations of a 0.4% monthly fall, following a notable drop in August, which signaled the impact of higher interest rates taking hold.

The Average House Price

Nationwide reports that the average house price in the UK stands at £257,808. In London, house prices recorded a less steep decline of 3.8% year-on-year, with the average home costing £514,325.

This indicates a more gradual drop compared to June when the regional index was last published.

Market Insights

Robert Gardner, Nationwide’s Chief Economist, points out that housing market activity remains weak, with a significant decline in mortgage approvals for house purchase.

He attributes this subdued picture to the challenges in housing affordability, where monthly mortgage payments have surged to 38% of take-home pay for those with average incomes, well above the long-run average of 29%.

However, there are signs of hope as investors adjust their expectations for future Bank Rate changes due to easing inflation pressures and softening labor market conditions.

Article 3 – “Weekly Recap: Key Stories from Friday’s Headlines”

A Look Back at Friday’s Highlights

Good morning! Let’s take a moment to recap some of the top headlines from yesterday.

World News

TDPel Media

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