Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
American home sales reach three-year minimum
In December, American home sales slipped to their lowest value for three years. House price increases speeded down steeply, dropping a hint at a further decrease of momentum in the American housing market.
Tuesday’s dismal report from the National Association of Realtors also suggested that the American economy was speeding down. Eventually, a long shutdown of the American federal government that has postponed a report from the Commerce Department is actually making it harder to obtain a full read of the American economy.
As the NAR informed, existing home sales in the USA dived by 6.4% to a seasonally updated annual rate of up to 4.99 million units in December 2018. It turned out to be the lowest result since November 2015.
Additionally, November's sales tempo was updated a bit up to 5.33 million unit from the previously posted 5.32 million units.
Financial analysts had hoped that existing home sales would decrease by 1% to 5.25 million units in December. Additionally, from last year existing home sales making up almost 90% of American home sales decreased by 10.3%.
For all of the previous year, sales declined by 3.1% hitting 5.34 million units. It turns out to be the weakest reading since 2015.
The US housing market has been hampered by higher mortgage rates, not to mention labor and land shortages that have resulted in tight inventory as well as more expensive houses. Nevertheless, there’s a hope for the sector. For example, the 30-year fixed mortgage rate dived to a four-month minimum, with much of the moderation taking place in the second half of the previous month, while house price inflation is speeding down.
From the previous year the median existing house price tacked on by 2.9% to $253,600 in December. It happened to be the smallest leap since February 2012.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.
Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.