Weekly Market Update 28/06/2024

The UK economy grew 0.7% in the first quarter of the year according to the Office for National Statistics, higher than the previously estimated 0.6%, boosted by stronger household spending. This is the fastest growth in UK GDP since the end of 2021, and marks the end of last year’s technical recession. However, monthly figures showed zero growth in April due to wet weather deterring shoppers from the high street.

NatWest, Barclays, and HSBC all cut mortgage rates this week with others expected to follow ahead of an anticipated interest rate cut in August. Last week, the Bank of England held rates at the 16-year high of 5.25%, however mortgage lenders have already started to reduce rates to remain competitive.

Ahead of the general election next week, according to the Financial Times poll tracker, Labour continue to lead the Conservatives by around 20 points, indicating the polls will end with a large Labour majority. This could equate to around 450 of the 650 seats available, which includes places where they finished over 40% behind the Conservatives in 2019.

Andrea Wood, Chartered MCSI
Investment Manager