China September New Homes Prices Extend Gains to Record High

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From Trading Economics: Average prices of new homes in 70 Chinese cities increased by 11.2 percent year-on-year in September of 2016, compared a 9.2 percent rise in August. It was the 12th straight month of gain and the fastest rise on record. In Beijing, prices rose 27.8 percent and in Shanghai went up 32.7 percent. Worries about overheated property markets prompted Chinese authorities in more than 20 cities to release a raft of stricter home-buying measures. Most of them are going to be implemented during the first week of October, which is not reflected in the latest data. On a monthly basis, new home prices rose 2.1 percent, compared to a 1.5 percent growth in the preceding month.

Market Snap

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In Asian Equity Markets stocks were mostly lower on Friday as the dollar climbed to seven-month highs against a basket of currencies and dragged down crude oil prices, cooling investor risk appetite.MSCI's broadest index of Asia-Pacific stocks outside Japan was down 0.3 percent. South Korea's Kospi lost 0.4 percent and Australian stocks shed 0.1 percent, weighed down by a retreat in energy stocks. Singapore fell 0.4 percent while Shanghai added 0.3 percent. The Nikkei rose 0.2 percent to 17,265.83 in midmorning trade and was up 2.4 percent for the week. The broader Topix gained 0.1 percent to 1,371.45 and the JPX-Nikkei Index 400 added 0.2 percent to 12,290.37.

In Currency Markets the dollar stood tall in Asian trading on Friday, on track for a weekly gain against a basket of currencies, as the euro wallowed at seven-month lows after the European Central Bank doused speculation that it would taper its stimulus. The euro fell 0.2 percent to $1.0907, poised to shed 0.6 percent for the week after plumbing $1.0891 earlier on Friday, its lowest since March 10. The dollar added 0.1 percent to 104.09 yen, edging down 0.1 percent for the week. Sterling was down 0.1 percent at $1.2238, on track to gain 0.4 percent for the week. The dollar index was up 0.2 percent at 98.476, up 0.5 percent for the week and near a session high of 98.564, its loftiest peak since March 10.

In Commodities Markets oil prices fell on Friday, pulled down by a stronger dollar, but traders said there were signs that physical fuel markets were tightening after two years of ballooning oversupply. U.S. WTI crude was trading at $50.40 a barrel, down 0.5 percent, from its last settlement. International Brent crude oil futures were down 0.4 percent, at $51.19 per barrel. Gold edged down on Friday as the dollar strengthened, but was on track for its first weekly gain in four weeks on steady physical buying from China and exchange-traded funds. Spot gold was down 0.3 percent at $1,262.24 an ounce. Spot silver fell 0.6 percent to $17.41. Platinum was down nearly 1 percent at $924.90. Palladium fell over 1 percent to touch a low of $621.50.

In US Equity Markets stocks ended a choppy session on Thursday with a slight decline as investors digested the latest round of earnings, with a sharp fall in telecoms offset by gains in healthcare. The S&P 500 lost 0.14 percent, to 2,141.34 and the Nasdaq Composite fell 0.09 percent, to 5,241.83. Telecoms were down 2 percent, their biggest percentage decline in five weeks, as Verizon lost 2.5 percent. The company added fewer than expected wireless subscribers in the third quarter and revenue fell short of expectations.  AT&T shares ended down 1.9 percent while Time Warner advanced 4.7 percent. Healthcare, up 0.5 percent, was the sole major sector in positive territory, led by a 3.9 percent climb in Danaher after its quarterly results.

In Bond Markets longer-dated U.S. Treasury yields fell on Thursday after European Central Bank President Mario Draghi said there was no discussion at the ECB's latest policy meeting on possible changes to its 1 trillion-plus euro bond purchase program. In light, choppy trading, benchmark 10-year Treasury notes were unchanged in price to yield 1.752 percent, while the 30-year bond was up 8/32 in price, yielding 2.501 percent, which was down more than 1 basis point on Wednesday.

Source: Institute of Trading and Portfolio Management