Weekly Market Update 26/07/2024
It has been a big week in the US with Joe Biden stepping down from the presidential race and Kamala Harris becoming the new Democratic candidate. It was on Sunday that 81-year-old Biden announced he would be withdrawing, after weeks of infighting among Democrats over whether the president would be mentally or physically able to serve another four year term. Biden endorsed Harris as his successor, who has secured enough delegates to win the nomination.
Also in the US, data released this week by the Bureau of Economic Analysis showed the US economy grew by 2.8% year on year in the second quarter, surpassing the expected 2% and a significant jump over the Q1 figure of 1.4%. Traders have slightly reduced their expectation of a Fed rate cut off the back of this data, but two or three rate cuts are still expected by the end of the year.
Focussing back on the UK, Nationwide became the first large lender in months to offer mortgage deals below 4%. From Wednesday, the rate on a range of products was cut, including the five-year fixed rate where borrowers have at least a 40% deposit, which was reduced by 0.19% points to 3.99%. Brokers see the fact that some rates are now starting with a three as a key milestone in encouraging potential buyers to move forward with purchases.
Andrea Wood, Chartered MCSI
Investment Manager
