The UK stock market experienced a modest increase on Thursday, with the FTSE 100 index rising by 0.48%. This upswing coincided with anticipation surrounding key economic data set to be released on Friday, including the crucial figures for April’s Gross Domestic Product (GDP). Analysts believe these statistics will shed light on the UK economy’s performance and influence future decisions by the Bank of England.
Monetary Policy Outlook
Oxford Economics UK predicts that the Monetary Policy Committee will maintain the Bank Rate at 3.75% in their upcoming meeting scheduled for June 18. They also suggest the voting dynamics may shift slightly, with more committee members, including Megan Greene, likely supporting a rate hike due to concerns over inflation.
European Central Bank Update
The European Central Bank (ECB) recently raised its key interest rates by 25 basis points, marking its first increase in 2023. This decision was prompted by inflationary pressures related to ongoing conflicts in the Middle East.
Housing Market Insights
In housing news, the Royal Institution of Chartered Surveyors (RICS) reported its house price balance at -35% for May 2026, unchanged from the revised April figure. This reading fell short of the consensus estimate of -31% and is the lowest seen since November 2023. RBC Capital Markets noted that the RICS survey indicates a market attempting to stabilize rather than recover, highlighting persistent challenges across demand, supply, and prices.
Key Statistics
- RICS House Price Balance: -35% in May 2026
- Previous month (April 2026): -35%
- Consensus estimate: -31%
- Weakest reading since: November 2023
Corporate Performance
In corporate developments, Intertek Group saw an increase of 1.65% after EQT, a Swedish private equity firm, extended its deadline for a firm offer to June 18. Conversely, Halma shares plummeted by 15.38%, making the company the worst performer in the FTSE 100. This decline occurred despite Halma reporting an increase in both fiscal 2026 profit and revenue, along with expectations for low double-digit organic revenue growth in fiscal 2027.
Global Geopolitical Concerns
Geopolitical tensions remain a significant concern as the United States and Iran exchanged attacks for a second consecutive day. This escalation has raised alarms about regional stability and the potential disruption of global energy supplies, despite ongoing diplomatic efforts to resolve the situation.
