Rolling coverage of the latest economic and financial news, as house prices defy fears of a crash, on the final trading day of 2023
European stock markets are rising, a little, on the final trading day of 2023.
In London, the FTSE 100 has gained 10 points or 0.13% to 7732 points, taking its gains this year to 3.8%.
“There isn’t too much festive cheer for UK stocks on the final trading day of 2023. The FTSE 100 has barely budged in early trading, with news of sluggish house price growth in December adding weight behind the theory of slowing activity.
There is an especially strong lens on consumer-facing stocks – we’re only a couple of weeks away from hearing how retailers fared over the crucial Christmas period. Short sellers are circling some areas of the sector in the expectation of bad news. A combination of life becoming more expensive and the prevalence of online options means momentum for the bricks and mortar players has become even harder to harness.
Mortgage rates have risen rapidly throughout the year and cost-of-living pressures forced many people to put their plans to move home or take their first step onto the property ladder on hold, but the lack of housing stock and soaring rent prices has resulted in a remarkably resilient market, though demand has certainly been subdued.
“For some households, however, things will not be quite so rosy and there is still a risk that we could see more people forced to sell their homes if the financial strain proves too much to bear.
