Investment market update
UK stocks are expected to open lower this morning following movement in Asia overnight.
Asian stocks retreated from a six-week high as a strengthening yen pressured Japanese shares, overshadowing gains from energy producers amid a rally in crude.
US stocks climbed, with the S&P 500 Index edging closer to a record, bolstered by speculation borrowing costs will remain lower for longer amid moderate growth.
UK stocks recovered from early losses as commodity-related shares rebounded. Rising copper prices lifted mining shares, with Glencore up 4.1%. Royal Dutch Shell rose 2.6% as oil prices continued to climb, hitting eight-month highs, as the price of Brent crude hit $52.20 per barrel.
UK house prices look set to dip for the first time since 2012 due to the uncertainty surrounding Britain’s vote on its European Union membership and as a new tax on buy-to-let properties and second homes kicks in. Home prices in central London are already falling, according to May data from the Royal Institution of Chartered Surveyors.
UK manufacturing output grew at the fastest pace for nearly four years in April, according to official figures. Manufacturing output grew by 2.3% in April, the Office for National Statistics said, the biggest monthly rise since July 2012, led by the pharmaceutical industry helped to drive the increase, with output in the sector up 8.6%.
Amazon is launching a full online supermarket service in the UK. Amazon Fresh food delivery business will now be available to users of its Prime membership plan in central and east London, the first time the service has been offered outside the US.