The FTSE 100 shrugged off losses on Wall Street overnight to trade higher on Wednesday morning as China showed genuine signs of easing up on Covid restrictions.
AJ Bell investment director Russ Mould said “Warnings from big American investment banks of a US recession in 2023 are setting less than happy mood music heading into the end of 2022 and the prospects of a Santa rally are fading by the day.
“The Federal Reserve meets next week to decide its latest rate increase and it still has plenty to think about as economic data delivers conflicting messages about the future trajectory of inflation and growth.
“Further evidence of a slowdown in UK house prices is unsurprising, but it underlines how tough the property market is right now as mortgage rates remain elevated and people don’t feel in a position to make such a big commitment thanks to uncertainty and cost of living pressures.
“The turmoil could become self-fulfilling as messages about double-digit falls in house prices moving forward lead potential purchasers to sit on their hands.”