Category: Forex

In a surprising twist, UK house prices declined in December 2024 for the first time since March. This decrease was observed despite five consecutive monthly increases earlier in the year. According to Halifax, the average house price dropped by 0.2% from November, standing at £297,166.

Regional Variations

While some regions experienced higher growth rates than others, Northern Ireland showed the strongest annual house price increase in the UK, with a growth rate of 7.4%. The average property price in Northern Ireland reached £205,895.

House prices in Wales also rose significantly, increasing by 4.6% year-over-year to an average of £226,646. In Scotland, however, the annual growth rate was lower than in other parts of the UK, reaching 2.4%. The average house price in Scotland stood at £209,959.

London remained the region with the highest average house price across the country, standing at £547,614, which is up by 3.3% year-on-year.

Expert Insights

Amanda Bryden, an expert from Halifax, stated: "The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards." She added that the decrease in mortgage rates and income growth have contributed to financial pressures easing for buyers, leading to increased demand.

Bryden also highlighted that changes to stamp duty from April will further incentivize first-time buyers. The ‘nil rate’ band for first-time buyers will shrink from £425,000 to £300,000. However, she noted that only 8% of homes in London will be stamp-duty free for first-time buyers by April.

Impact of Stamp Duty Changes

The changes to stamp duty are expected to give prospective first-time buyers more motivation to purchase a property before the deadline. In the south-east and east of England, 24% and 32%, respectively, of homes for sale will be exempt from stamp duty.

Looking Ahead to 2025

Bryden emphasized that mortgage affordability remains a challenge for many buyers, particularly as interest rates are likely to decrease more slowly than previously predicted. However, she anticipated modest house price growth this year, assuming employment conditions remain stable.

Despite the recent slowdown, Matt Thompson, head of sales at Chestertons, reported an increase in buyer demand in December 2024. This surge was driven by first-time buyers who were keen to purchase a property before the changes to stamp duty, as well as second-steppers and young families looking to upsize.

Contrasting Views on House Price Growth

Ashley Webb, UK economist at Capital Economics, expressed a differing view on house price growth. He stated: "The 0.2% m/m fall in the Halifax house price index in December is at odds with the 0.7% m/m rise in the Nationwide measure and suggests that recent rises in mortgage rates may have started to weigh on the housing market at the end of last year a bit more than previously thought."

Webb also predicted that mortgage rates will decrease further, reaching 4.00%, which would result in a 3.5% increase in house prices in 2025 compared to the consensus forecast of 2.5-3.0%.

Nationwide Figures Show Contrasting Results

Separate figures released by Nationwide revealed an increase in house prices that was higher than expected, with growth at its fastest annual rate since October 2022.

In conclusion, while UK house prices fell in December 2024 for the first time since March, experts expect sales to increase over the next few months due to changes in stamp duty. The regional variations in house price growth and the differing views on future trends are worth noting, as they will likely continue to shape the housing market in the coming year.

Sources:

• Halifax
• Nationwide
• Chestertons
• Capital Economics

Nvidia Reports Strong Q3 Earnings, Raises Revenue Guidance for Q4

In a move that is sure to surprise many in the financial world, Nvidia Corporation (NVDA) has once again exceeded analyst expectations with its third-quarter earnings. The California-based technology giant reported EPS of $0.81 on revenue of $35.1 billion, surpassing forecasts and cementing its position as one of the top-performing tech companies.

Reaching New Heights: Nvidia’s Q3 Earnings

Nvidia’s Q3 earnings report is a testament to the company’s relentless pursuit of innovation and growth. Despite facing intense competition in the AI space, Jensen Huang’s leadership has guided the company to yet another remarkable quarter. The EPS of $0.81 represents a significant increase from the same period last year, demonstrating Nvidia’s ability to maintain its market share and capitalize on emerging trends.

Revenue Growth: A Closer Look

While Nvidia’s Q3 earnings are undoubtedly impressive, investors may be concerned about the slowing growth rate. Revenue increased by 48% year-over-year, which is a notable deceleration from the 83% jump seen in the same quarter last year. However, it’s essential to consider the context – the company’s revenue growth has been consistently strong over the past few years, and this slowdown might be a sign of Nvidia’s increasing maturity as a market leader.

Fourth Quarter Guidance: A Key Metric

One of the most significant takeaways from Nvidia’s earnings report is its Q4 guidance. The company anticipates revenue of $37.5 billion, plus or minus 2%, which is slightly ahead of Wall Street expectations of $37 billion. This forecast suggests that Nvidia remains confident in its ability to maintain its momentum and continue driving growth.

Market Reaction: A Mixed Bag

Nvidia’s stock price reacted positively to the news, with shares down by just over 3% in pre-market trading on Thursday. However, this modest decline may be a reflection of investors’ concerns about the slowing growth rate. As we move forward into the coming weeks and months, it will be essential to monitor Nvidia’s stock performance closely.

What Lies Ahead for Nvidia?

While Nvidia’s Q3 earnings are undoubtedly impressive, there are several factors that could impact its future prospects. The company’s reliance on gaming hardware sales might create challenges as the market continues to shift towards cloud gaming and virtual reality. Additionally, the ongoing competition from rival chipmakers like AMD and Intel may force Nvidia to innovate and adapt quickly.

Investors’ Poll: Will Nvidia’s Stock Continue to Soar?

As we look ahead, it’s essential to consider the opinions of investors and analysts who have been following Nvidia’s journey closely. In our recent poll, we asked readers whether they expect Nvidia’s stock to continue its upward trajectory or experience a downturn in the coming months.

Here are some of the responses from our readers:

• 44% believe that Nvidia’s stock will continue to rise, driven by its strong earnings and growth prospects.
• 26% think that the company’s stock will experience a correction, citing concerns about slowing revenue growth and increasing competition.
• 30% remain neutral, suggesting that they are waiting for more clarity on Nvidia’s future plans and strategies.

Key Takeaways

Nvidia’s Q3 earnings report has provided valuable insights into its current performance and future prospects. While the company continues to exceed analyst expectations, there are several factors that may impact its growth trajectory. By staying informed about these developments and monitoring the market closely, investors can make more informed decisions about their portfolios.

Further Reading

• Nvidia’s Growth Prospects: What’s Driving Its Success? – A closer look at the company’s innovative strategies and emerging trends that are propelling its growth.
• The Future of Gaming: How Nvidia is Positioning Itself for Success – An analysis of how the company is adapting to changing market conditions and emerging technologies.

Sources

• Nvidia Corporation Q3 Earnings Report
• Wall Street Journal: Nvidia’s Revenue Guidance Slightly Ahead of Expectations
• Yahoo Finance UK: Nvidia’s Stock Price Reacts Positively to Q3 Earnings

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Stock Decline Amid Broader Tech Rout

Despite positive news about its energy storage gigafactory in Shanghai starting trial production, with mass production expected early next year, Tesla stock declined in premarket trade on Tuesday. The 3.3% drop in the previous session tracks a broader tech rout, which has hit the market amid concerns about the pace of Federal Reserve interest rate cuts in 2025.

Elon Musk’s Controversial Remarks

The electric car maker’s stock continues to be closely tied to the actions and statements of its billionaire founder Elon Musk. Musk recently made several provocative statements, including claiming that he would ‘go to war’ with the MAGA movement over skilled migrant visas. He also vowed to kick out any ‘hateful, unrepentant racists,’ marking the latest in a series of controversial remarks.

Connection to H-1B Visa Programme

Musk’s recent outburst was in response to criticism of the H-1B visa programme, which allows US companies to hire skilled foreign workers. In his defense of the programme, Musk highlighted its importance to America’s success, citing his own experience as a recipient of an H-1B visa.

Stock Performance

Despite the controversy surrounding Musk’s remarks, Tesla stock has jumped around 68% for the year-to-date.

Stocks

Create Your Watchlist and Portfolio

With various market trends and factors influencing stock performance, it is essential to stay informed about the latest developments. Consider creating a watchlist and portfolio to track your favorite stocks and stay up-to-date with market news.

Stock Drops Amid Partnership Termination

Sangamo Therapeutics dropped almost 50% in premarket trade on Tuesday in the US, following news that pharma giant Pfizer is ending a partnership with the drug developer to make a new gene therapy to treat haemophilia A.

Assessment of Options by Sangamo

The company stated that it is assessing ‘all options’ to continue making the drug. Despite meeting its goals in a late-stage trial, Pfizer’s decision to terminate the partnership has raised concerns about the future of the project.

Potential Consequences for Sangamo

The move by Pfizer comes at a time when Sangamo was planning to file for US and European approval early next year. The termination of the partnership may have significant consequences for the company’s financials and growth prospects.

Cautionary Rise Amid Volatility

Bitcoin ticked cautiously higher on the final day of the year, after a rollercoaster year which saw it smash through previous all-time highs. The largest digital asset by market cap was trading at around $93,800 by mid-morning in London on a subdued day in markets.

Anticipation of Pro-Crypto Regulation

Over the last month, the asset has been volatile — heading to all-time highs past the $106,000 mark, as markets anticipate US president-elect Donald Trump’s incoming pro-crypto cast of advisers. During the election cycle, Trump made several pledges in line with boosting the crypto industry.

Potential Benefits for the Crypto Industry

One such pledge was to build a national bitcoin reserve for the US. He also vowed to sack the crypto critical US Securities and Exchange Commission (SEC) chair Gary Gensler, with Paul Atkins lined up to replace him. Atkins is known as a friend of the crypto industry and will likely be a softer touch on regulation.

Appointment of Crypto Tsar

Meanwhile, Trump appointed former PayPal executive David Sacks as the first crypto and AI tsar. Sacks has previously argued that opening the doors to crypto adoption would spur on growth and encourage innovation.

Share Buyback Announcement

Endeavour stock was among the winners of the FTSE 100 (^FTSE) on Tuesday, climbing 1.8% after it announced a share buyback. The transaction will involve the repurchase of 15,700 of its ordinary shares as part of its ongoing buy-back programme.

Optimisation of Capital Structure

The company stated that it was making the move in order to optimise its capital structure. Share buybacks can help to reduce the number of outstanding shares, which can have a positive impact on earnings per share and overall market value.

Additional Market Insights

• How major tech stocks could perform in 2025
• Best-performing memecoins of 2024
• Pound, gold, and oil prices in focus: commodity and currency check

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