FTSE 100 falls as recession fears hit markets

Good morning.

There are early signs the UK’s housing boom could finally be coming to an end.

The average price of a home rose 1.1pc in April to £286,079, according to Halifax. That’s a new record high and the 10th consecutive month of growth.

However, growth slipped to 10.8pc on an annual basis, compared to 11.1pc the previous month.

Halifax warned that rising interest rates and surging inflation would soon dent demand, and predicted a slowdown in growth by the end of the year.

5 things to start your day 

1) Surging unemployment and soaring inflation: Britain’s gloomiest economic forecast for a decade  Britain’s economy will be hampered by the Bank raising borrowing costs and Chancellor Rishi Sunak cutting back on fiscal support

2) Homeowners pitted against developers to tackle ‘generation rent’  Developers warn planned reforms will be a ‘death-knell for the high street’

3) Britain faces recession and 10pc inflation as interest rates rise  Dire predictions on growth and unemployment as Bank raises rates to 1pc

4) Nadine Dorries to press ahead with competition crackdown on big tech  Culture Secretary launching Digital Markets unit with power to levy multi-billion pound fines

5) Climate change crisis will ‘dwarf’ cost of living pain, says Mark Carney  The former Governor of the Bank of England believes that governments must seize the moment and move away from fossil fuels

What happened overnight 

Asian shares tumbled to their lowest in seven weeks and the dollar stood tall as investors globally shunned riskier assets over fears that higher US interest rates and China’s reinforcement of its zero-Covid policy could hit growth hard.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 2.7pc and fell to its lowest level since March 16, the day when Chinese vice premier Liu He boosted shares by pledging to support markets and the economy.

Japan’s Nikkei bucked the trend, rising 0.6pc on its return from a three-day holiday. Chinese blue chips shed 2pc, the Hong Kong benchmark lost 3.4pc and China’s yuan tumbled to an 18-month low in both onshore and offshore markets.

Coming up today

• Corporate: Apax Global Alpha, Beazley, International Consolidated Airlines Group (interims); InterContinental Hotels Group, Spirent Communications (trading statement)
• Economics: Construction PMI (UK), nonfarm payrolls (US), average weekly earnings (US), unemployment rate (US)