Global stock markets edged lower on Friday as a rise in oil prices and a surprise drop in UK house prices dampened investor sentiment. The FTSE 100 fell 0.3% in early trading, while Germany's DAX and France's CAC 40 also declined, reflecting concerns over the pace of economic recovery.
Oil Prices Climb on Supply Concerns
Brent crude rose above $76 a barrel, up 1.2%, as supply disruptions in Libya and ongoing OPEC+ production cuts outweighed demand worries. Analysts at Goldman Sachs noted that "tight supply conditions are likely to persist through the third quarter," supporting prices.
UK House Prices Drop Unexpectedly
UK house prices fell by 0.2% in June, the first monthly decline since November, according to Halifax. The average property price now stands at £288,000, down from £289,000 in May. Halifax's Kim Kinnaird said, "The housing market continues to show resilience, but rising interest rates and cost-of-living pressures are beginning to weigh on demand."
Market Reaction and Outlook
The decline in UK house prices adds to signs that the economy is slowing, with the Bank of England expected to raise interest rates further to combat inflation. In the US, futures pointed to a lower open on Wall Street, as investors awaited key jobs data. The yield on the 10-year US Treasury note fell to 4.35%, reflecting a flight to safety.
Asian Markets Mixed
In Asia, Japan's Nikkei 225 closed 0.5% lower, while Hong Kong's Hang Seng index rose 0.3% on hopes of further stimulus from China. The mixed performance mirrored global uncertainty over trade and monetary policy.
