China Home Prices Rise to 31 Months High

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From Trading Economics: Average prices of new homes in 70 Chinese cities increased by 9.2 percent year-on-year in August of 2016 from 7.9 percent in July. It was the eleventh straight month of gain and the fastest rise since January 2014. In Beijing, prices rose 23.5 percent and in Shanghai went up 31.2 percent. On a monthly basis, new home prices rose 1.5 percent, compared to a 0.8 percent growth in the preceding month. Prices increased in 64 cities, up from 51 in July, and dropped in only 4 cities. Housing Index in China averaged 2.14 percent from 2011 until 2015, reaching an all time high of 9.90 percent in November of 2013 and a record low of -6.10 percent in March of 2015. Housing Index in China is reported by the National Bureau of Statistics of China.

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In Asian Equity Markets stocks advanced on Monday ahead of central bank meetings in the United States and Japan this week, while oil prices bounced on talk of an OPEC deal on output and reports of fighting around Libyan oil ports. MSCI's broadest index of Asia-Pacific stocks outside Japan gained 0.8 percent, though that remained well short of recent one-year peaks. Shanghai put on 0.6 percent, while South Korea added 0.6 percent. Liquidity was lacking with Tokyo closed for a holiday. The Australian index, S&P/ASX 200, fell 0.22 percent. In China, house prices data for August rose 9.2 percent, outpacing the increase of 7.9 percent seen in the previous month year-on-year.

In Currency Markets the dollar edged lower on Monday, paring some of the gains made in the wake of strong U.S. inflation data that bolstered bets the Federal Reserve will raise interest rates this year. The euro edged up 0.1 percent to $1.1166,  having touched a low of $1.1149 earlier on Monday, its lowest level since Sept. 6. The dollar eased 0.2 percent against the yen to 102.02 in holiday-thinned trading, as Japanese markets were closed for a public holiday. Sterling edged up 0.3 percent to $1.3038 on Monday, getting a bit of reprieve after falling 1.8 percent on Friday. The dollar index fell 0.2 percent to 95.888. On Friday, it touched 96.108, its strongest level since Sept. 1.

In Commodities Markets oil prices rose almost 2 percent on Monday, after Venezuela said OPEC and non-OPEC producers were close to reaching an output stabilizing deal and as clashes in Libya raised concerns that efforts to restart crude exports could be disrupted. Brent crude futures were at $46.59 per barrel, up 1.8 percent, from their previous settlement. U.S. crude was up about 2 percent, at $43.91 a barrel.  Spot gold was up 0.4 percent at $1,315.60 an ounce. Among other precious metals, spot silver rose over 2 percent to as much as $19.17 per ounce, while platinum gained over 1 percent to $1,027.80, off Friday's 2-1/2-month low of $1,005. Palladium was up 1 percent at $677.72.

In US Equity Markets  stocks fell on Friday as the possibility of a $14 billion fine against Deutsche Bank weighed on big banks and investors wrestled with lingering uncertainty about when the U.S. Fed will hike interest rates. The S&P 500  fell 0.38 percent to 2,139.16 and the Nasdaq Composite declined 0.1 percent to 5,244.57. Deutsche Bank's U.S.-listed shares fell 9.35 percent. Dow components Goldman Sachs and JPMorgan fell over 1 percent each. The technology index on Friday lost 0.33 percent, pulled down by Apple's 0.56-percent decline and Oracle's 4.75-percent fall following weak quarterly profit. Helping limit losses was Intel's 3.04-percent gain to a 15-year high after the chipmaker raised its third-quarter revenue forecast.

In Bond Markets U.S. Treasuries yields rose on Friday after data showed that U.S. consumer prices increased more than expected in August, raising the odds that the Federal Reserve will raise rates later this year. Benchmark 10-year notes ended up 1/32 in price to yield 1.70 percent, after trading at 1.67 percent before the data. The Labor Department said its Consumer Price Index rose 0.2 percent last month after being unchanged in July. The core CPI, which strips out food and energy costs, increased 2.3 percent in the 12 months through August, which is above the Fed's 2 percent target.

Source: Institute of Trading and Portfolio Management