U.S. Housing Starts Rise; PPI Edges Up

123jump.com Staff
17 Mar, 2009
New York City

U.S. housing starts in February rose after falling sharply in January. The multi-family units construction starts surged after hovering near three decade lows. Separately, a measure of wholesale price index increased in the month from January but still lower from a year ago.

[R]9:45 AM New York – U.S. stocks decline in the morning after mixed economic reports. Markets in Asia closed higher and in Europe traded lower.[/R]

U.S. housing starts gained in February to annual rate of 583,000 after dropping sharply to a revised annual rate of 477,000. The January rates were revised up from 466,000. A rise in condo and apartment construction starts lifted the aggregate number. Construction of single family homes increased 1.1% from January to 357,000 and condo and apartment buildings soared to 226,000 from annual rate of 124,000 in January.

The Commerce Department report also noted that single and multi-family construction permits rose 3% in the month to annual rate of 357,000.

Separately, the Labor Department reported producer price index gained 0.1% in February after increasing at a rate of 0.8% in January. The measure of wholesale price index declined 1.3% from a year ago in the month.

The Fed is expected to announce its rate decision tomorrow and market watchers expect no change in the current interest rate target range between zero and 0.25%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 244.98 or 3.18% to 7,949.13, Hang Seng index in Hong Kong decreased 98.62 or 0.76% closed to 12,878.09, CSI 300 index in China higher 80.79 or 3.60% closed to 2,322.40. ASX 200 index in Australia increased 103.50 or 3.09% closed to 3,451.90. The KL Composite index in Malaysia higher 0.99 or 0.12% closed to 841.87.

The Kospi Index in South Korea increased 38.42 or 3.41% to close at 1,163.88. SET index in Thailand closed lower 2.29 or 0.54% to 422.32 and JSE Index in Indonesia decreased 12.76 or 0.96% closed to 1,312.09. The Sensex index in India decreased 79.72 or 0.89% closed to 8,863.82.

Europe Markets Review

In London FTSE 100 Index traded lower 25.53 or 0.66% to 3,838.46, in Paris CAC 40 Index decreased 28.19 or 1.01% to 2,763.47 and in Frankfurt DAX index traded lower 27.02 or 0.67% to 4,017.52. In Zurich trading SMI decreased 6.81 or 0.14% to 4,809.62.