Business news live: UK house prices rose 2.4% in July and FTSE 100 falls as new Trump tariffs are announced

Investors will remember the days of early April when Trump’s original tariff announcement sent stock markets into freefall – 30 per cent drops were not uncommon and America’s biggest companies collectively lost trillions in value.

They are mostly all back now, and then some, so it’s not entirely surprising to see stock markets heading lower as deadline day arrives.

With some agreements made though and other tariffs not as punitive as originally feared, the sell-off is nothing like that early April deep dive.

Today’s FTSE 100 is down 0.5 per cent, while in Europe the German DAX is down 1.4 per cent and France’s CAC 40 is down 1.5 per cent.

Asian stocks also fell overnight – the Hang Seng, Nikkei 225 and Asia Dow were between 0.5 per cent and 0.8 per cent in the red.

Donald Trump has been accused of backing away from his threats more often than not – hence the rise of the TACO trade.

But taking that gamble hasn’t paid off this time around, says Derren Nathan, head of equity research, Hargreaves Lansdown.

“Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the 1 August deadline came into play, with rates ranging from 10% to 41%.

“Mexico was the only reprieve of note, earning a 90-day extension to agree a deal. China already faces a separate deadline of 12 August.”

While the deadline for trade deals has arrived, not everyone is seeing an immediate change.

Mexico have been given a 90-day reprieve, for example, while the US said there was a seven-day window before tariffs came into effect.

Then, nations who don’t have a deal will see levees of between 10 and 40 per cent applied.

• Brazil 10%, but 40% for some goods
• India 25%
• South Africa 30%
• Taiwan 20%
• Syria 41%
• Iraq 35%
• Lesotho 15%
• Serbia 35%

Donald Trump’s 1 August hard deadline for trade deals to be arranged has arrived and, with it, a slew of nations find themselves hit with 35 per cent tariff rates.

The most shocking name on the list is Canada, with the US’s neighbour now impacted with all deals not already included in the US-Mexico-Canada agreement.

Prime minister Mark Carney said he was “disappointed” by the outcome.

The deal also stipulates goods shipped elsewhere and then back into the US would be subject to a 40 per cent rate,

Early hours, Trump wrote on social media that Canada supporting Palestine as a state would “make it very hard for us to make a Trade Deal with them.”

We’ll have plenty of reaction coming in to those house price numbers this morning.

The important factors to consider are ultimately what it means to those who are buying, selling or needing a new mortgage deal soon.

Of late it has seemed a good time for buyers, at least in many regions, but inflation is impacting on that side – as well as the return-to-office trend some companies are insisting on.

“Homebuying activity may be picking up, but there are wide variations in price growth across the country. Competition among sellers has also been heating up over the summer amid a surge in listings, which may keep a lid on prices going forward,” said Alice Haine, Personal Finance Analyst at Bestinvest.

“Affordability is gradually improving, driven by a steady decline in mortgage rates following four interest rate cuts since August last year, with a fifth anticipated next week. At the same time, more flexible mortgage rules are easing the homeownership journey for first-time buyers and helping those refinancing larger loans to meet affordability criteria, ensuring continued access to financing.

“Affordability remains a challenge for some, however. Inflation has been creeping up in recent months putting a dent in consumer purchasing power. Higher stamp duty costs can also be prohibitive, particularly for first-time buyers who must save a large deposit and cover a heavier property tax liability.

“The post-pandemic ‘race for space’ is now being put to the test. For some, a move to a larger home may be creating a financial headache as their mortgage expiry date looms. For others, a more rural living location outside the city may be creating a commuting challenge as more employers roll back on hybrid working options. A jump in repayment costs may be a stretch too far, which is why it’s no surprise that estate agents are reporting a rise in the number of homeowners choosing to sell up, either to downsize to a more affordable or suitably-sized property, or to relocate away from their rural retreat back to the city and closer to the office.

“If the Bank of England proceeds with a fifth rate cut next week, mortgage rates may ease further, opening up the market for more buyers. The traditional summer surge in listings is another positive for buyers, who can take advantage of a wider range of homes to choose from. It is less of a boon for sellers, however, as it raises the potential for heavier negotiations on price.”

Nationwide have released their latest data on house prices, with July showing an uplift of 2.4 per cent on average.

That’s compared to July last year, while it’s also a rise month on month after June showed a 2.1 per cent increase.

The average price of a house is now £272,664.

Robert Gardner, Nationwide’s Chief Economist, said:

“July saw a modest pick-up in the rate of annual house price growth to 2.4%. Prices increased by 0.6% month on month, after taking account of seasonal effects.

“Looking through the volatility generated by the end of the stamp duty holiday, activity appears to be holding up well. Indeed, 64,200 mortgages for house purchase were approved in June, broadly in line with the pre-pandemic average, despite the changed interest rate environment.

“Similarly, the interest rate on a typical five-year fixed-rate mortgage is around 4.3% (for a borrower with a 25% deposit). This is still over three times the all-time lows prevailing in autumn 2021, but well below the highs of c5.7% reached in late 2023.”

Before markets open up this morning, here’s PA’s recap from yesterday:

The FTSE 100 gave up early gains as a strong US inflation reading and weak mining stocks tempered enthusiasm provided by well-received earnings on both sides of the Atlantic.

The index closed down 4.13 points at 9,132.81. It had earlier traded as high as 9,190.73, a new all-time peak.

The FTSE 250 closed 186.25 points higher, 0.9%, at 21,962.83, and the AIM All-Share closed down 1.22 points, 0.2%, at 761.50.

In Europe on Thursday, the Cac 40 in Paris fell 1.1%, while the Dax 40 in Frankfurt slid 0.8%.

The FTSE 100 has surged to new record levels after investors piled back into the stock markets they deserted in April following Donald Trump’s announcements of tariffs.

The new highs are seen as good news for investors but also for most people in the UK, whose pensions will likely be invested in companies in the stock market.

Here, The Independent takes a look at what this could mean for future investments:

First up, a quick recap with yesterday’s top lines in case you missed them:

Good morning and welcome to The Independent’s live business coverage. Coming up, the latest companies news, stock market updates and everything else affecting UK consumers, investors and more.

Also coming up is Nationwide’s latest house price data, plus this evening is the outcome of the car finance scandal.