U.S. Existing Home Sales Pull Back Less Than Expected In January

Existing home sales in a U.S. pulled behind in Jan after jumping in December, according to a news expelled by a National Association of Realtors on Friday, with existent home sales stability a vacillating settlement of monthly increases and declines.

NAR pronounced existent home sales slumped by 1.3 percent to an annual rate of 5.46 million in Jan after surging adult by 3.9 percent to a revised rate of 5.53 million in December. Economists had approaching existent home sales to diminution by 1.8 percent.

Despite a monthly decrease, a news remarkable existent home sales in Jan were adult by 9.6 percent compared to a same month a year ago.

“Existing-home sales are off to a clever start during 5.46 million,” NAR’s arch economist Lawrence Yun. “The trend line for housing starts is augmenting and display solid improvement, that should eventually lead to some-more home sales.”

The pullback in existent home sales in Jan came as home sales in a West segment plunged by 9.4 percent to a rate of 1.060 million.

On a other hand, existent home sales in a Midwest jumped by 2.4 percent to a rate of 1.290 million, while home sales in a South and Northeast were scarcely unchanged.

NAR pronounced a median existent home cost for all housing forms was $266,300 in January, down 3 percent from $274,500 in Dec though adult 6.8 percent from $249,400 in a same month a year ago.

“Mortgage rates have helped with affordability, though it is supply conditions that are pushing cost growth,” Yun said.

The news pronounced housing register during a finish of Jan totaled 1.42 million units, adult 2.2 percent from Dec though down 10.7 percent from a year ago.

The unsold register represents 3.1 months of supply during a stream sales pace, adult from a 3.0-month figure available in Dec though down from a 3.8-month figure available in Jan 2019.

Single-family home sales tumbled by 2.6 percent to an annual rate of 4.85 million in January, while existent condominium and commune sales slumped by 1.6 percent to a rate of 610,000.

Next Wednesday, a Commerce Department is scheduled to recover a apart news on new home sales in a month of January.

UK Manufacturing Growth Fastest In 10 Months

UK production grew during a fastest gait in 10 months in February, while a services zone stretched during a slowest gait in dual months, heading to fast enlargement of a private zone consult information showed Friday. The peep IHS Markit / CIPS Flash UK Composite Purchasing Managers’ Index showed a reading of 53.3 in February, unvaried from January. A reading above 50 suggests enlargement in a sector.

The latest reading forked to a joint-fastest enlargement of private zone outlay given Sep 2018, IHS Markit said. The peep services PMI fell to a two-month low of 53.3 from January’s 53.9. In contrast, a peep production PMI strike a 10-month high of 51.9 contra 50.0 in January. Though decrease domestic doubt increased business as good as consumer confidence, a altogether rate of new sequence enlargement eased from a 19-month rise seen in Jan amid a debility in a services sector.

Several use providers reported that a coronavirus, or Covid-19, conflict had weighed on abroad bookings and resulted in a termination of some orders from clients in Asia, quite those formed in mainland China, IHS Markit said. In manufacturing, extended shutdowns in China led to bonds of inputs descending during a fastest gait for over 7 years and businessman lead times lengthening to a biggest border given Mar 2019.

The retailer smoothness times sub-index forsaken 7 points signalled a largest month-on-month slip in supply sequence opening given a consult began in 1992 and exceeded a prior record seen during a UK fuel protests in Sep 2000, a consult found. Despite a coronaviurs concerns, outlay enlargement expectations opposite a UK private zone softened somewhat given Jan and remained a top given Jun 2015.Service providers were some-more confident than manufacturers. “The new lapse to enlargement signaled by a production and services PMIs provides a transparent denote that a UK economy is no longer prosaic on a back, with a GDP nowcast indicating to 0.2 percent enlargement by a initial entertain of a year,” IHS Markit Associate Director Tim Moore said.

Gold Futures Settle Sharply Higher On Safe-haven Appeal

Gold prices rose neatly on Friday, as reports about a fast swelling coronavirus conflict lifted concerns about a opinion for a tellurian economy and stirred investors to evade riskier resources and find a protected breakwater of a yellow metal.

Weak mercantile information and rising bond yields too contributed to gold’s uptick.

Gold futures for Apr finished adult $28.30, or about 1.8%, during $1,648.80 an ounce, a top turn given midst Feb 2013.

Gold futures gained about 3.9% in a week, a largest weekly earnings given June.

Silver futures for Mar finished adult $0.211 during $18.530 an ounce, while Copper futures for Mar staid during $2.6080 per pound, gaining $0.0200 for a session.

In mercantile news, existent home sales in a U.S. pulled behind in Jan after jumping in December, according to a news expelled by a National Association of Realtors on Friday, with existent home sales stability a vacillating settlement of monthly increases and declines.

NAR pronounced existent home sales slumped by 1.3% to an annual rate of 5.46 million in Jan after surging adult by 3.9% to a revised rate of 5.53 million in December. Economists had approaching existent home sales to diminution by 1.8%.

Despite a monthly decrease, a news remarkable existent home sales in Jan were adult by 9.6% compared to a same month a year ago.

The IHS Markit US Composite PMI fell to 49.6 in Feb 2020 from 53.3 in a prior month, indicating to a initial month of contraction in a private zone given Oct 2013.

The IHS Markit US Manufacturing PMI fell to 50.8 in Feb of 2020 from 51.5 in January, while Services PMI forsaken to 49.4 in a month, from 53.4 a month earlier.

Meanwhile, on a pathogen front, Chinese officials reported 1,109 new reliable cases of a coronavirus, adult neatly from 349 cases a prior day. Meanwhile, South Korean health authorities also reported 52 new cases of a fast-spreading disease, lifting a inhabitant total to 156, while a series of reliable cases in Japan increasing by 23 to 728.

Oil Futures Settle Lower On Concerns Over Energy Demand Outlook

Crude oil prices drifted reduce on Friday amid concerns about a opinion for appetite direct due to a impact of a coronavirus conflict on a tellurian economy.

Traders also weighed reports suggesting a difference in a crude-production fondness between Saudi Arabia and Russia.

West Texas Intermediate Crude oil futures for Apr finished down $0.50, or about 0.9%, during $53.38 a barrel.

Despite shutting a event on a diseased note, WTI wanton oil futures available a benefit of about 2% in a week.

Brent Crude futures declined by about 1.4% to $58.46 a barrel.

On Thursday, WTI wanton oil futures for Apr finished adult $0.39, or 0.7%, during $53.88 a barrel, upheld by information display a smaller-than-expected boost in U.S. wanton inventories final week.

Reports about resumption of ceasefire talks between army fighting over Libya’s collateral helped palliate concerns about supply disruptions.

According to a news from Baker Hughes, wanton oil rigs in a United States increasing to 679 in a week finale Feb 21 from 678 in a prior week.

The World Health Organization (WHO) pronounced currently that there were 76,767 reliable cases of COVID-19, with a genocide fee during 2,247. Although a series of new cases in China slowed a bit, a arise in a series of new cases in South Korea has lifted concerns.

South Korean health authorities reported 52 new cases of a fast-spreading disease, lifting a inhabitant total to 156. Meanwhile, a series of reliable cases in Japan increasing by 23 to 728.

Treasuries Extend Upward Move Amid Continued Coronavirus Concerns

Treasuries showed a poignant pierce to a upside during trade on Friday, fluctuating a important allege seen in a prior session.

Bond prices gave behind some belligerent after relocating neatly aloft in early trade though remained resolutely positive. Subsequently, a produce on a benchmark ten-year note, that moves conflicting of a price, fell by 5.4 basement points to 1.471 percent.

The continued strength among treasuries came as traders continued to keep a tighten eye on a latest coronavirus news, with Chinese officials stating 1,109 new reliable cases of a coronavirus, adult neatly from 349 cases a prior day.

South Korean health authorities also reported 52 new cases of a fast-spreading disease, lifting a inhabitant total to 156, while a series of reliable cases in Japan increasing by 23 to 728.

A series of companies have warned about a impact of a coronavirus, with Coca-Cola (KO) forecasting a conflict will trim 1 to 2 cents per share off a initial entertain earnings.

On a U.S. mercantile front, a National Association of Realtors expelled a news display a pullback in existent home sales in a month of January.

NAR pronounced existent home sales slumped by 1.3 percent to an annual rate of 5.46 million in Jan after surging adult by 3.9 percent to a revised rate of 5.53 million in December. Economists had approaching existent home sales to diminution by 1.8 percent.

Despite a monthly decrease, a news remarkable existent home sales in Jan were adult by 9.6 percent compared to a same month a year ago.

Coronavirus news is expected to sojourn in a spotlight subsequent week, nonetheless traders are also expected to keep an eye on reports on consumer confidence, new home sales, durable products orders, and personal income and spending.

Bond trade could also be impacted by greeting to a formula of a Treasury Department’s auctions of two-year, five-year and seven-year notes.

S&P 500 Sent Worrying Signal by Bond Market, USD/KRW Rises

MARKET DEVELOPMENT SP 500, USD/KRW, EUR/USD Analysis

Equity markets are a hold softer as investors continued to tatter over a widespread of a coronavirus. South Korea saw a series cases doubled overnight, that has coincided with South Korean 10yr yields plummeting by 21bps (most given 2012). As a reminder, with a BoK rate preference scheduled for Feb 27th, eyes will be on intensity speak alluding to a pre-emptive, as was a box in a 2015 MERS outbreak.

Samp;P 500 Sent Worrying Signal by Bond Market, USD/KRW Rises - US Market Open

EUR: Modest gains for a Euro that hovers around a 1.0800 hoop following a slew of improved than approaching from a Eurozone. Although, while a title shows signs of life for a Eurozone production sector, a finer sum advise that a Eurozone is not out of a woods yet. IHS Markit remarkable that a opinion stays rarely uncertain, particularly in honour to a intensity for serve disruptions to supply chains, that does not bode good for subsequent month’s release.

Bond Market Signals Cast Doubt Over Further Rise in US Equities

Samp;P 500 Sent Worrying Signal by Bond Market, USD/KRW Rises - US Market Open

Source: DailyFX, Refinitiv

Samp;P 500 Sent Worrying Signal by Bond Market, USD/KRW Rises - US Market Open

Economic Calendar (21/02/20)

Samp;P 500 Sent Worrying Signal by Bond Market, USD/KRW Rises - US Market Open

Source: DailyFX,

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— Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX