Market Update
Home Price Growth Slows
Brian Turner
29 Nov, 2022
New York City
Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.
Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.
From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August across the nation.
The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.
Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.
Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.
All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.
Lackluster Trading On Wall Street, Rate Path Worries Resurface
Barry Adams
29 Nov, 2022
New York City
Stocks on Wall Street traded lower for the second day this week after investors shifted focus to interest rate path and inflation data.
Inflation data are scheduled to be released on Thursday and the PCE price index is expected to increase at least 6.0% for October month from a year ago.
The S&P 500 index decreased 0.2% to 3,955.43 and the Nasdaq Composite index fell 0.4% to 11,007.61.
China said it plans to accelerate vaccination of senior citizens and relax stringent lock down measures, health authorities reported today.
Over the weekend a string of protests spread to in many cities and on university campuses against zero-Covid policies, Chinese authorities plan to find ways to coexist with the highly infectious coronavirus.
Crude oil prices rose on speculation that China's relaxation of zero-Covid policy may revive the import of crude oil and on hopes that oil producing nations may announce a production cut at its next meeting on December 4.
Crude oil increased 84 cents to $78.02 and natural gas was unchanged at $7.20 a thermal unit.
The yield on 2-year U.S. Treasury notes increased to 4.47%, 10-year U.S. Treasury notes edged higher to 3.73% and 30-year Treasury bonds traded at 3.78%.
Home Price Growth Slows
Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.
Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.
From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August across the nation.
The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.
Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.
Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.
All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.
China Crackdown Fear Roils Global Markets
Barry Adams
28 Nov, 2022
New York City
Global markets sold off after protests spread to more cities in China sparking fear of a government crackdown and destabilizing the second largest economy in the world.
Local authorities in China are struggling with the zero-Covid policy implementation and anger is mounting across the nation after months of lockdowns in smaller cities.
About 400 million people in China are in various stages of lock down and sometimes a single infection in an apartment complex could force strict mobility restrictions on all residents.
Global companies are increasingly shifting manufacturing away from China as zero-Covid linked supply chains are likely to persist.
After three years of coronavirus pandemic, China, the only nation among large economies, is still struggling with rising infections.
Coronavirus infections rose to a daily high of 44,000 over the weekend, but reported deaths in China are still less than a handful.
Benchmark indexes opened lower and began to lose ground as the session advanced. Market indexes in the final hour accelerated the declines and closed near the lows of the session.
The S&P 500 index declined 1.5% to 3,963.94 and the Nasdaq Composite index dropped 1.6% to 11,049.50.
Crude oil rose 40 cents to $76.68 s barrel and natural gas declined $1.31 to $5.70 a thermal unit.
The yield on 2-year Treasury notes fell to 4.45%, 10-year Treasury notes eased to 3.68% and 30-year Treasury bonds inched lower to 3.73%.
Stock Movers
Apple Inc declined 2.2% to $144.94 on the worries that the growing unrest in China and at its main contractor Foxconn may create a shortage of iPhone Pro models.
iPhone shipments fell 17% to 8.4 million in October from Henan province, China's customs data showed on Thursday.
Foxconn's mega-complex is based in its capital city Zhengzhou, Henan province where thousands of employees are forced to stay in the factory compounds for more than two months.
Energy producers declined after WTI crude oil prices fell to a 11-month low on China-demand worries.
Exxon Mobil, Chevron, Marathon Oil, Valero, Occidental Petroleum, Hess and Baker Hughes declined between 1% and 3%.
Casino operators increased after China granted provisional licenses to keep operations running in gambling center Macau.
Las Vegas Sands, Wynn Resort, Melco and MGM gained between 0.5% and 6.5%.
Taboola.com Limited soared 47% to $2.70 after Yahoo agreed to acquire a minority stake of 26% in the advertising company.
Yahoo also signed a 30-year contract with Taboola to power its native advertising on all sites operated by the publishing company.
European Markets Decline, Lagarde Guides Higher Rates
European markets traded down led by weak resource sector stocks and growing anger against zero-Covid policy in China sparked a fresh wave of unrest.
Automakers led the decline amid rising fears that a Chinese government crackdown may impact operations and disrupt economic activities.
ECB President Christine Lagarde said inflation is high and has not peaked yet and the central bank is not through raising interest rates.
Lagarde was addressing lawmakers at the European Parliament's Committee on Economic Affairs.
Consumer price Inflation in the 19-member eurozone rose to 10.6% in October and Lagarde said there are too many uncertainties to determine when the inflationary forces are likely to recede.
The European Central Bank is expected to lift rates by at least 50 basis points following its next rate setting committee's meeting on December 15.
This year, the central bank ended net bond purchases and lifted rates three times in a row since July but interest rates at 2.0% are still considerably lagging inflation hovering above 10%.
The surge in core inflation was initially mainly supply driven factors, but the importance of demand factors increased over time as the economic activities picked up and the labor market remained tight.
Policymakers are also struggling with record spread in inflation rates in the currency union with France reporting the lowest rate 0f 7.1% and the rate of 22.5% in Estonia in October.
The DAX index fell 1.1% to 14,383.36, the CAC-40 index declined 0.7% to 6,665.20 and the FTSE 100 index dropped 0.2% to 7,474.02.
The benchmark Swiss Market Index closed down 5.87 points to 11,162.16.
Brent crude oil declined 30 cents to $83.30 a barrel and Dutch TTF natural gas eased 0.9% to 123.28 euros a MWh.
The euro edged down to $1.035 and the British pound extended recent gains to $1.197.
The yield in 10-year German Bunds increased to 1.99%, French bonds t0 2.66%, the U.K. Gilts to 3.12% and Italian bonds to 3.91%.
UK Automobile Production Rebounds
UK automakers production increased 7.4% in October reversing a 6.0% decline in September, the Society of Motor Manufacturers and Traders reported Friday.
Automobile production rose to 69,524 units but 48.4% below the pre-pandemic level of 134,669 units in October 2019.
Luxury automobile exports dominated the production rebound, with exports increasing 6.3% to 56,469 units and domestic sales rising 12.5% to 13,055.
For the year-to-date to October, automobile production declined 10.8% to 643,755 from 721,509 a year ago.
Europe Stock Movers
Brenntag fell 9.7% to
Movers: Apple, Energy Complex, Casino Stocks, Taboola
Barry Adams
28 Nov, 2022
New York City
Apple Inc declined 2.2% to $144.94 on the worries that the growing unrest in China and at its main contractor Foxconn may create a shortage of iPhone Pro models.
iPhone shipments fell 17% to 8.4 million in October from Henan province, China's customs data showed on Thursday.
Foxconn's mega-complex is based in its capital city Zhengzhou, Henan province where thousands of employees are forced to stay in the factory compounds for more than two months.
Energy producers declined after WTI crude oil prices fell to a 11-month low on China-demand worries.
Exxon Mobil, Chevron, Marathon Oil, Valero, Occidental Petroleum, Hess and Baker Hughes declined between 1% and 3%.
Casino operators increased after China granted provisional licenses to keep operation running in gambling center Macau.
Las Vegas Sands, Wynn Resort, Melco and MGM gained between 0.5% and 6.5%.
Taboola.com Limited soared 47% to $2.70 after Yahoo agreed to acquire a minority stake of 26% in the advertising company.
Yahoo also signed a 30-year contract with Taboola to power its native advertising on all sites operated by the publishing company.
China Linkages Worry European Corporations, UK Auto Production Rebounds
Bridgette Randall
28 Nov, 2022
Frankfurt
European markets traded down led by weak resource sector stocks and growing anger against zero-Covid policy in China sparked a fresh wave of unrest.
Automakers led the decline amid rising fears that a Chinese government crackdown may impact operations and disrupt economic activities.
ECB President Christine Lagarde said inflation is high and has not peaked yet and the central bank is not through raising interest rates.
Lagarde was addressing lawmakers at the European Parliament's Committee on Economic Affairs.
Consumer price Inflation in the 19-member eurozone rose to 10.6% in October and Lagarde said there are too many uncertainties to determine when the inflationary forces are likely to recede.
The European Central Bank is expected to lift rates by at least 50 basis points following its next rate setting committee's meeting on December 15.
This year, the central bank ended net bond purchases and lifted rates three times in a row since July but interest rates at 2.0% are still considerably lagging inflation hovering above 10%.
The surge in core inflation was initially mainly supply driven factors, but the importance of demand factors increased over time as the economic activities picked up and the labor market remained tight.
Policymakers are also struggling with record spread in inflation rates in the currency union with France reporting the lowest rate 0f 7.1% and the rate of 22.5% in Estonia in October.
The DAX index fell 1.1% to 14,383.36, the CAC-40 index declined 0.7% to 6,665.20 and the FTSE 100 index dropped 0.2% to 7,474.02.
The benchmark Swiss Market Index closed down 5.87 points to 11,162.16.
Brent crude oil declined 30 cents to $83.30 a barrel and Dutch TTF natural gas eased 0.9% to 123.28 euros a MWh.
The euro edged down to $1.035 and the British pound extended recent gains to $1.197.
The yield in 10-year German Bunds increased to 1.99%, French bonds t0 2.66%, the U.K. Gilts to 3.12% and Italian bonds to 3.91%.
UK Automobile Production Rebounds
UK automakers production increased 7.4% in October reversing a 6.0% decline in September, the Society of Motor Manufacturers and Traders reported Friday.
Automobile production rose to 69,524 units but 48.4% below the pre-pandemic level of 134,669 units in October 2019.
Luxury automobile exports dominated the production rebound, with exports increasing 6.3% to 56,469 units and domestic sales rising 12.5% to 13,055.
For the year-to-date to October, automobile production declined 10.8% to 643,755 from 721,509 a year ago.
Europe Stock Movers
Brenntag fell 9.7% to
Persistent China Disruptions Drag World Markets Down, Oil Drops to 11-month Low
Barry Adams
28 Nov, 2022
New York City
Stocks on Wall Street opened lower after protests spread to more cities in China, prompting worries of crackdown and disrupting supply chains.
Global companies are increasingly shifting manufacturing away from China as zero-Covid linked supply chains are likely to persist.
After three years of coronavirus pandemic, China, the only nation among large economies, is still struggling with rising infections.
Coronavirus infections rose to a daily high of 44,000 but reported deaths in China are still less than a handful.
China's zero-Covid strategy has now put more than 400 million people under strict lockdown conditions and several cities are facing stricter mobility restrictions for more than three months.
The S&P 500 index declined 0.8% to 3,993.86 and the Nasdaq Composite index dropped 0.6% to 11,152.74.
Crude oil rose 50 cents to $77.78 s barrel and natural gas declined 35 cents to $6.67 a thermal unit.
The yield on 2-year Treasury notes fell to 4.45%, 10-year Treasury notes eased to 3.69% and 30-year Treasury bonds inched lower to 3.74%.
Stock Movers
Apple Inc declined 2.2% to $144.94 on the worries that the growing unrest in China and at its main contractor Foxconn may create a shortage of iPhone Pro models.
iPhone shipments fell 17% to 8.4 million in October from Henan province, China's customs data showed on Thursday.
Foxconn's mega-complex is based in its capital city Zhengzhou, Henan province where thousands of employees are forced to stay in the factory compounds for more than two months.
Energy producers declined after WTI crude oil prices fell to a 11-month low on China-demand worries.
Exxon Mobil, Chevron, Marathon Oil, Valero, Occidental Petroleum, Hess and Baker Hughes declined between 1% and 3%.
Casino operators increased after China granted provisional licenses to keep operation running in gambling center Macau.
Las Vegas Sands, Wynn Resort, Melco and MGM gained between 0.5% and 6.5%.
Taboola.com Limited soared 47% to $2.70 after Yahoo agreed to acquire a minority stake of 26% in the advertising company.
Yahoo also signed a 30-year contract with Taboola to power its native advertising on all sites operated by the publishing company.