United States New Home Sales Beat Market Expectations

News Event

From Trading Economics: Sales of new single-family houses in the United States rose 3.1 percent to a seasonally adjusted annual rate of 593,000 in September of 2016, compared to market expectations of a 1 percent decline. Figures for the previous month were revised down by 34,000 to 575,000. New Home Sales in the United States averaged 651.94 Thousand from 1963 until 2016, reaching an all-time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011. New Home Sales in the United States is reported by the U.S. Census Bureau.

Market Snap

Market Closing Wrap

In European Equity Markets, stocks fell for a third day on growing worries about the health of the region's companies as energy producers suffered from declines in oil prices. Losses worsened in the Stoxx Europe 600 Index, which fell the most in more than a week, as firms from Bayer AG to builder Vinci SA reported disappointing earnings. Antofagasta Plc led miners down after forecasting a slide in copper production next year, while energy producers including BP Plc and Royal Dutch Shell Plc fell with oil. Bayer retreated 1.5 percent after reporting a slide in profits at its consumer health business. Vinci lost 1.2 percent as its revenue fell. Danish enzyme maker Novozymes A/S sank 11 percent after its sales and earnings missed projections.

In Currency Markets the U.S. dollar fell against a basket of major currencies on Wednesday after touching a nearly nine-month high on Tuesday as the greenback looked vulnerable to weakness on uncertainty surrounding Federal Reserve monetary policy and the U.S. election. The euro was last up 0.32 percent against the dollar at $1.0921 after touching a six-day high of $1.0945 earlier in U.S. trading. The dollar was up 0.14 percent against the yen at 104.36 yen. Sterling was last up 0.33 percent against the dollar at $1.2230. The dollar was down 0.18 percent against the Swiss franc at 0.9921 franc after hitting a 7-1/2-month high of 0.9998 franc on Tuesday. The dollar index was last down 0.23 percent at 98.494.

In Commodities Markets  oil fell 1 percent on Wednesday on growing doubts that OPEC would cut production enough to drain a global glut, although prices bounced off session lows, with Brent returning above $50 a barrel after the U.S. government reported a surprise drawdown in crude inventories. U.S. crude stockpiles fell 553,000 barrels last week, the U.S. Energy Information Administration said. Brent crude was down 1.5 percent, at $50.04 a barrel. It fell as low as $49.65, its lowest since Sept. 30. U.S. West Texas Intermediate crude fell 1.2 percent, to $49.36. Its session low was $48.87, a trough since Oct. 4. Spot gold had declined 0.33 percent at $1,269.63 an ounce, while silver shed 0.62 percent to $17.67 an ounce.

In US Equity Markets stocks were lower on Wednesday morning as Apple's weak results weighed on technology stocks but a sharp recovery in oil prices limited some losses.  The S&P 500 was down 0.19 percent, at 2,139.03 and the Nasdaq Composite was down 0.39 percent, at 5,262.98. Shares of the world's most valuable public company fell 3.7 percent - set for their worst day in six months - after the company said sales of its flagship iPhones fell for the third quarter in a row.  Biogen rose 4.3 percent after the drugmaker reported a rise in quarterly profit that blew past estimates. Edwards Lifesciences was the biggest loser on the S&P 500, falling 13.8 percent after the medical device maker reported third-quarter sales that missed expectations.

In Bond Markets  U.S. Treasury debt prices fell on Wednesday, in line with losses in Europe and Britain, in generally quiet trading ahead of a debt auction later in the session and key U.S. gross domestic product data due on Friday.  In late morning trading, benchmark 10-year Treasury notes were down 9/32 in price to yield 1.791 percent, up from 1.758 percent late on Tuesday. Earlier in the session, 10-year yields hit a more-than-one-week peak of 1.793 percent. U.S. 30-year bonds were 23/32 down in price to yield 2.536 percent, up from Tuesday's 2.502 percent. U.S. two-year note yields were at 0.876 percent, up from Tuesday's 0.863 percent.

Source: Institute of Trading and Portfolio Management