Rate hike fears intensify as rising inflation persists
We’re starting with more dramatic growth in the housing market, with prices posting their biggest monthly increase in over 14 years.
The average price of a house rose 1.7% to £ 267,587 in September, the biggest increase since February 2007. For the year, house prices rose 7.4%.
The housing market has been booming since last summer, boosted by lower stamp duties and demand for larger housing outside the city center.
As September marked the end of the stamp duty holiday, many factors supporting the market remain in place.
They include cheap loans, a lack of supply, a strong job market, and continued demand for larger properties as part of the shift to working from home.
5 things to start your day
1) Gas prices fluctuate wildly as Putin pledges to increase supplies – Prices drop from new records after Russian President says he will inject more gas into Europe to help ease energy crisis
2) Alan Rusbridger under pressure over Facebook role as whistleblower scandal escalates – Social network of Allegations overshadows profit over safety with quick calls for former Guardian editor and other members of the Supervisory Board to step down
3) Rail commuters face 12% fare hike as inflation rises – Soaring train ticket prices deepen plight for workers returning to offices after pandemic
4) Used car prices hit an ‘extraordinary’ record average of over £ 16,000 – Lack of new vehicles due to the chip crisis and fear of public transport helped fuel 18 consecutive months of price increases
5) Housing tax must rise by £ 220 to fix £ 3bn Covid black hole, IFS says – According to the Institute for Fiscal Studies, the housing tax may need to increase by 5% per year, as social protection reforms pose “major challenges” for budgets
What happened during the night
Asian stocks rallied on Thursday, cheering for a late rally on Wall Street after US politicians appeared close to a temporary deal to avoid a federal debt default and as Russia reassured the Europe on gas supply, calming volatile markets.
Oil prices also fell from multi-year highs reached a day earlier, having been a major contributor to the sell off of stocks this week, as benchmark yields for the US Treasury and major currencies stabilized in a climate calmer.
The largest MSCI Asia-Pacific stock index outside of Japan rose 1.25 percent at the start of trading, regaining ground lost in recent days for little change over the week.
As oil prices fell on Thursday, benchmarks of equities in Korea rose 1.3%, Australia by 0.64% and Hong Kong by 2%.
The Japanese Nikkei rose 0.89% and US equity futures, the S&P 500 e-minis, gained 0.42%.
Chinese markets have remained closed for a holiday.
Interim employees of the Volution group: Vertu Motors, Morses Club
Entain, Mondi, CMC Markets, Robert Walters
House prices in Halifax (United Kingdom); jobless claims (United States)