Stock Market Recovers, Fed Meeting Is Eyed
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
Home prices could head south in some smaller Chinese cities next year
In 2019, home prices in some smaller Chinese cities could inch down due to the fact that the world's number two economy speeds down, while the Chinese cabinet is anticipated to step in to withstand any precipitous dive.
Nationwide surge in the Asian country’s property prices has slumped in 2018 reacting to measures to tame speculation. However, a lot of investors are still making use of regulatory loopholes. They turn to smaller as well as less restrictive cities.
A broad decelerating in the Chinese economy might further impact the sector, which appears to be a crucial surge driver. As for property sales by floor area, they’ve been diving month-on-month, although they’re still higher in 2018 in contrast with last year.
Homebuilders will probably experience more difficult market conditions next year, with decelerating economic surge as well as deteriorating sentiment suppressing sales volumes along with home-price gains.
In an attempt to stimulate prices, property developers have tried to manipulate them, deliberately delaying sales to back prices. Other measures included illegally giving loans for downpayment and publishing fake price information.
However, the rating agency told that the downturn will probably be muted, and the country’s cabinet is capable of easing policies to back the market.
Sales volumes might go down 10%, following low-single-digit profit this year, with dives expected to be the strongest in lower-tier cities.
Smaller Chinese cities are going to be most impacted by the decreasing monetized resettlement of shanty-town inhabitants.
By the way, shanty-town redevelopment has underpinned property demand because residents utilize cash compensation to purchase a new home in case existing ones get demolished.
For this year, the market could expand up to 2% demonstrating a record 1.7 billion square meters.
The country’s home prices have ascended 42 months in a row.
Similar
Strong US Retail Sales Pressed Gold
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
Fed Jackson Hole Conference To Take Place Virtually
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
Latest news
Will USD Stop Falling Today? Market Wrap
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Major Event Alert: Canadian Retail Sales
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).
Weekly US employment: a chance for the USD
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Deposit with your local payment systems
