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London stocks set to open higher

written by Bella Palmer
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The FTSE 100 was called to open nearly 90 points higher to just more than 8,300

London stocks were set to rise at the open on Tuesday as investors play catch up after positive sessions in Europe and the US on Monday.

The FTSE 100 was called to open nearly 90 points higher to just more than 8,300.

Data released earlier by Halifax showed that house prices returned to growth in April, with the housing market "finding its feet in an era of higher interest rates".

According to Halifax, average house prices increased 0.1% on the month after a 0.9% drop in March.

On the year, house prices rose 1.1% in April after a 0.4% rise the month before.

The figures showed that a typical UK home now costs £288,949 compared to £288,781 in March.

Investors were also digesting industry data showing that UK retail sales dropped 4% year-on-year in the April as wet spring weather deterred shoppers, despite businesses offering hefty discounts in an attempt to entice customers into stores.

The rain dampened sales growth for clothing and footwear, particularly outdoor sportswear, as well as DIY and garden furniture, according to the BRC-KPMG retail sales monitor for the four weeks to April 27. The early timing of the Easter break also had an impact, it stated.

Nevertheless, promotions in computing boosted sales as customers sought to upgrade their technology after a boom in purchases during the Covid-19 pandemic. There was also a small increase in online shopping - the proportion of non-food internet purchases - to 36.2% in April from 36.1% a year earlier.

The April figure compares with growth of 5.1% in April 2023 and was below the three-month average growth of 0.5% and the 12-month average of 2.2%.

When correcting for the distortion created by the earlier timing of Easter this year, average growth for March and April together was 0.2%, according to the survey. This year, the run-up to Easter was in March, while last year the run-up was in April - with results artificially higher in March and lower in April.

Food sales gained 4.4% year-on-year over the three-month period to April 27, below the 12-month average growth of 6.7%. Non-food sales declined 2.8%, which was sharper than the 12-month average drop of 1.5%.

Dismal weather and disappointing sales led to a depressing start to Spring for retailers, even accounting for the change in timing of Easter. People delayed typical spring purchases despite retailers’ attempts to entice customers with heavy discounts, according to BRC boss Helen Dickinson.

She added: Many retailers are hoping for brighter sales over the summer months as social events ramp up, and consumer confidence could improve with a potential reduction in interest rates.

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