European stock markets were mixed at the opening on Wednesday, after a broadly positive session on Tuesday, as UK house prices rose in January.
In London, the FTSE 100 (^FTSE) was trading 0.1% lower after opening, while the CAC (^FCHI) gained 0.2% in Paris, adding to its record high, and the Frankfurt DAX (^GDAXI) was almost 0.1% up.
According to Nationwide’s House Price Index, there was a slight improvement in the annual rate of house price growth from -1.8% in December to -0.2% in January.
Prices ticked up 0.7% to an average of £257,656 as pressures on mortgage rates eased, following an optimistic shift in how investors view the Bank of England‘s potential interest rate path, the building society said.
Robert Gardner, Nationwide’s chief economist, said: “While a rapid rebound in activity or house prices in 2024 appears unlikely, the outlook is looking a little more positive.”
Across the pond, US markets finished the day mixed last night, with the Nasdaq 100 (^IXIC) sliding back, the S&P 500 (^GSPC) finishing flat, and the Dow (^DJI) finishing higher.
Traders will have their eyes fixed on the US Federal Reserve’s interest rate decision later, as well as the press conference.
Michael Hewson of CMC Markets said: “Having seen the ECB keep rates on hold last week, today is the turn of the Federal Reserve where we could see the central bank look to put a pin in the idea that a March rate cut is coming. That’s not to say the Fed will rule the idea of rate cuts coming, simply that March is too soon for a data dependant central bank.”
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How to prepare your pension to live to 100
Recent figures revealed there were over half a million people in the UK aged 90 or over in 2022 and more than 15,000 people aged 100 or more. This number has doubled in 20 years. The ranks of centenarians are still dominated by women, but men are catching up. Twenty years ago, there were 8.2 women over 100 to every man: now it’s 4.5.
It means that despite all the health challenges thrown at us in recent years, we’re defying them all, and men and women are living to a ripe old age. This is largely exceptionally good news. Who doesn’t want to live longer? However, it comes with a sting in the tail.
Despite life expectancy growing, the period of our lives we’re expected to remain healthy for has shrunk since 2015. A baby boy currently has a healthy life expectancy of 63 years, and a baby girl 64 years. It means we need to make plans not just for a longer life, but one where we might not be in brilliant health for a major part of it.
At the same time, because we’re living longer, the government has been increasing the state pension age, and is expected to keep doing so.
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Judge blocks $56bn Tesla pay deal
Elon Musk, CEO of Tesla (zz/Michael Germana/STAR MAX/IPx, Associated Press) A judge in Delaware has annulled a $55.8bn (£44bn) pay deal awarded to Elon Musk in 2018 by electric car company Tesla.
Judge Kathaleen McCormick said the payout was “an unfathomable sum” that was not fair to shareholders. The lawsuit was filed by a shareholder who argued that it was an overpayment.
The pay deal was the biggest ever in corporate history, helping to make Mr Musk one the richest people in the world.
If the decision survives an appeal, the Tesla board will have to come up with a new compensation package for Musk.
“Never incorporate your company in the state of Delaware,” Musk said on X, formerly known as Twitter.
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Watch: How does inflation affect interest rates?
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