Market Report: slow start to September with US tariff drama back in the spotlight
Matt Britzman, senior equity analyst, Hargreaves Lansdown: “September kicks off on a cautious note, with the FTSE 100 opening broadly flat as traders weigh a quiet calendar and thin volumes amid the US Labour Day holiday. Energy names are under mild pressure as oil prices extend their slide, while housebuilders could stay in focus after soft Nationwide data hinted at affordability strains. With few domestic catalysts, attention turns to central bank signals later this week to set the tone for the month ahead.
UK house prices edged 0.1% lower in August, defying forecasts for a rise and trimming annual growth to 2.1%, as stretched affordability continues to bite. With mortgage costs still more than triple pre-pandemic levels and first-time buyers spending 35% of take-home pay on repayments, demand looks fragile. For housebuilders, that backdrop could mean slower reservation rates and pressure on margins, even if hopes of further rate cuts later this year offer a glimmer of relief.
US markets are closed for Labour Day, but headlines are anything but quiet. A federal appeals court ruled Trump’s global tariffs illegal, setting up a Supreme Court showdown before they expire in mid-October – injecting fresh uncertainty into trade policy. That backdrop, coupled with rising bets on a Fed rate cut later this month, has gold glistening near record highs as investors seek safety. All eyes now turn to this week’s labour data, which could shape the size of the Fed’s next move.
Brent crude oil slid to $67.20 this morning, extending losses as oversupply fears and cooling demand take centre stage. Traders are watching this week’s OPEC+ meeting, where faster output hikes could swell global supply – even as US demand fades post-summer. Geopolitical risks, from the Russia-Ukraine conflict to US pressure on India over Russian imports, still loom. But for now, it’s the supply-demand imbalance driving the narrative.”
Sarah Coles, head of personal finance, Hargreaves Lansdown: “The latest HL Savings and Resilience Barometer was published this morning revealing that of the 8.8 million households in the UK that are in a position to invest, 42% of them don’t. Even among the 20% of highest earners there are gaps. Of the 3.2 million households in this group that are in a position to invest, nearly a third (31%) aren’t currently doing so. The sheer size of the investment gap within this group demonstrates the enormous potential for savers to embrace investment.”