Daily Brief - 19 Feb 2024

Goldman sets S&P 500 target higher at 5,200 amid profit growth

Goldman Sachs has raised its target for the S&P 500 index to 5,200 by the end of the year, marking a second increase in their forecast. The decision comes as the stock market recently surpassed 5,000 points, driven by higher profit expectations. This new goal suggests a nearly 4% rise from the current level. The optimism is based on anticipated stronger economic growth and better earnings, especially in technology and communication sectors. With the S&P 500 already up by 4.9% this year, Goldman's target is one of the highest among Wall Street analysts, indicating a positive outlook for the stock market.

Apple set to face a €500 million EU fine

Apple is about to get hit with a hefty fine of almost €500 million by the European Union, marking its first penalty from the bloc. This comes after an investigation found Apple limited competition for music streaming services like Spotify on its platform. The EU claims Apple stopped rivals from telling users about cheaper subscription options outside the App Store. Meanwhile, in a separate issue, Apple's expected to settle with the EU over its Apple Pay system, promising to open iPhone technology to other payment apps. This is part of the EU's broader push to clamp down on Big Tech's market power, with new rules coming soon to ensure fair play.

UK house prices up as buyers jump back in

UK homes are fetching higher asking prices, marking the second month of increases as the property market shows signs of recovery. The average asking price has nudged up by 0.9% to £362,839, even ticking above last year's figures for the first time since July 2023. Sales and interest from buyers are also on the rise, with a 16% boost in sales and a 7% increase in both new listings and inquiries compared to last year. This positive trend comes as mortgage costs drop and economic prospects look brighter, encouraging more buyers to make their move. However, the market remains sensitive to price, with buyers still cautious due to the relatively high borrowing costs. Sellers are advised to keep their price expectations realistic to attract buyers navigating the costly mortgage landscape.