Housing Market

Global Stocks Hit 21 Month Highs, Futures Point To New Record Ahead Of Inflation Data

The global "risk on" melt-up continues. After a modestly hawkish Yellen warned that every meeting is live, and refused to take March off the table, sending the dollar and yield higher and the S&P to fresh record highs, world stocks rose hitting a 21-month high on Wednesday with the dollar rising for the 11th straight day, the longest positive streak since July 2015.

Key Events In The Coming Humphrey-Hawkish Week

The key economic releases this week are CPI, retail sales, and industrial production on Wednesday. In addition, there are several scheduled speaking engagements from Fed officials this week, including Chair Yellen’s semi-annual Monetary Policy Report to Congress on Tuesday and Wednesday (Humphrey-Hawkins).

Global Stocks Rise, S&P Futures Make New Record Highs As "Trump Trade" Euphoria Returns

European and Asian stocks, S&P futures, bond yields, the dollar and commodity metals are rose, in some cases making new all time highs, lifted by the latest reemergence of the "Trump trades" as hopeful investors once again bet that the U.S. president's tax reform plans will boost economic growth and corporate profits, despite another warning from Goldman that the president's fiscal plan is about to be derailed.

There Are 66,719 Empty Mansions In Vancouver

Vancouver’s multimillion-dollar homes are not only out of reach for most Vancouverites, they are rapidly becoming a self-contained ghost town, because nothing speaks to the Canadian city’s affordability crisis more than its empty houses acquired by "hot money" laundering Chinese: as of the end of 2016, the number of Vacant or temporarily occupied houses more than doubled since 2001 to a whopping 66,719.

Chinese Banks Begin To Raise Mortgage Rates

In the latest tightening in China's financial conditions, the China Securities Journal reports that some bank branches in Beijing, Guangzhou and Chongqing have raised mortgage rates for first-home buyers recently.

Canada At 150: Hate Crimes & The Chinese Question

As it turns 150 years old in 2017, Canada faces a surge in hate crimes amid growing nativist anger against Chinese migrants, Muslim refugees, and public officials for their alleged role in worsening the country’s socio-economic conditions, said community leaders and analysts.

Weekend Reading: Trump-eting Dow 20,000

We can only surmise how this eventually turns out. But whether it is extremely suppressed volatility, extreme long positions in small-cap stocks or historical short positions in bonds, the “rubber band” is stretched very tightly. Of course, while “Trump-xuberance” currently reigns, there seems to be nothing to worry about. But then again, maybe that is exactly what we should be worrying about.

Frontrunning: January 27

  • Mexico Dispute Could Overshadow May’s Free-Trade Message (BBG)
  • NATO, Russia and trade top the agenda for Trump talks with Britain's May (Reuters)
  • Trump's plan for import tax worsens crisis with Mexico (Reuters)
  • Nafta’s U.S. Impact is Modest (WSJ)
  • Republicans Are Making Little Progress on Their Obamacare Repeal Strategy (BBG)

New Home Sales Collapse In December As Trump Rate Surge Hits

With soaring mortgage rates and plunging mortgage applications, it should be no surprise that new home sales crashed in December. Analysts expected a modest 0.7% decline but sales crashed 10.4% - the most since March 2015 - and at 536k SAAR, this is the lowest since Feb 2016.