There were no major data releases from the UK on Monday. Britain's housing market has "hit the ground running" in 2016 said Rightmove, a property listings website, in its house price index for January. The average house price reached £299,287 after rising 2.9% over the month. Rightmove also said there was a 5% increase in the number of properties coming onto the market during January, and a 10% rise in the supply of typical first-time buyer homes, which have two bedrooms or fewer.
House prices rose sharply in recent years for a number of reasons. In some areas of the country, particularly London and the south east of England, there is a serious shortage of housing supply. Other areas were recovering from a low base after the financial crash, with property prices only reaching their pre-crisis peaks again in 2014. And a healing domestic economy, high employment and low interest rates have fueled demand for home purchases.
Focus of tomorrow's session will be on CPI and PPI figures. Analysts are expecting 0.1% incline in CPI and decrease by 1.2% in PPI Input. In the US session Empire State Manufacturing Index data will be published. Increase to -10.3 is predicted.
Figures to watch:
CPI/PPI (Tuesday 10:30)
Empire State Manufacturing Index (Tuesday 14:30)
