United States Home Sales at 9-1/2-Year High

News Event

From Trading Economics: Sales of previously owned houses in the United States rose 2 percent to a seasonally adjusted annual rate of 5600 thousand in October of 2016. It is the highest figure since February of 2007, beating market expectations of a 0.5 percent fall or 5430 thousand. Sales of single family homes went up 2.3 percent to 4990 thousand while those of condos were flat at 610 thousand. The average price fell 1 percent and the months’ worth of supply went down to 4.3 from 4.4. Existing Home Sales in the United States averaged 3881.83 Thousand from 1968 until 2016, reaching an all time high of 7250 Thousand in September of 2005 and a record low of 1370 Thousand in March of 1970. Existing Home Sales in the United States is reported by the National Association of Realtors.

Market Closing Wrap

In European Equity Markets metals and mining stocks climbed 3 percent on Tuesday underpinning a firm open for Europe's benchmark stock index as the global reflation trade in the wake of Donald Trump's victory in the U.S. presidential election continued. The pan-European STOXX 600 index rose 0.7 percent in early trades. The European basic resources index was the best performing sector index after prices of major industrial metals such as copper and aluminum rose 1 to 2 percent. Anglo American, BHP Billiton and Antofagasta advanced 4.0 to 5.3 percent. Genmab rose 4.8 percent after the company received U.S. approval for a drug while Essilor shares were poised for their worst day in eight years after the firm cut its outlook.

In Currency Markets the dollar resumed its uptrend on Tuesday, helped by a rise in U.S. existing home sales last month that further cemented expectations not only of a Federal Reserve interest rate hike in December, but also of further tightening next year. In late morning trading, the dollar rose 0.4 percent against the yen to 111.20 yen. On Monday, the dollar had hit a six-month high versus the Japanese currency. The dollar index rose 0.1 percent to 101.19 as the euro fell 0.3 percent against the dollar to $1.0598. Sterlingdeclined 0.61 percent to $1.2416. The Australian dollar was higher, with Aussie up 0.16 percent at $0.7381, while Kiwi fell 0.40 percent to $0.7037.

In Commodities Markets  oil turned negative in volatile trade on Tuesday on worries Iran and Iraq were not ready to agree on an OPEC output freeze after prices earlier rose to the highest level this month on reports cartel members had overcome their internal disputes. Brent futures were down 0.8 percent, at $48.49 a barrel. U.S. crude fell 1.6 percent, to $47.47 per barrel. Brent came within 4 cents of $50 earlier in the session, its highest since Oct. 28.  Spot gold was down 0.3 percent at $1,210.37 an ounce. Silver rose 1.2 percent to $16.79 an ounce and platinum was 0.8 percent higher at $942.50. Palladium was up 0.7 percent at $733.48, after touching its strongest since Aug. 10 at $742.20.

 

In US Equity Markets stocks rose on Tuesday, with the Dow topping 19,000 points for the first time ever, as the Donald Trump-fueled rally continued, with investors buying into a market primed to benefit from his pro-growth policies. The Dow Jones Industrial Average was up 0.2 percent, at 18,994.08, easing after hitting an all-time high of 19,013.12. The S&P 500 was up 0.2 percent, at 2,202.64 and the Nasdaq Composite was up 0.32 percent, at 5,385.79. Dollar Tree rose 9.4 percent after the biggest U.S. dollar-store chain reported a better-then-expected quarterly profit. Signet also rose 10 percent after the jeweler reported a smaller-than-expected fall in same-store sales and raised its profit forecast.

 

In Bond Markets U.S. Treasuries were relatively steady on Tuesday before the U.S. Treasury Department is due to sell $34 billion in five year notes, after two-year note yields earlier on Tuesday rose to more than six-year highs. Benchmark 10-year note yields were last little changed on the day to yield 2.31 percent. Two-year note yields rose as high a 1.107 percent on Tuesday, the highest since April 2010, before falling back to 1.103 percent.

Source: Institute of Trading and Portfolio Management