Economy

Google Ad

US MBA mortgage applications for the week ending 27 September jumped 8.1% after slumping =10.1% the prior week. Mortgage rates fell back under 4% fueling the activity.

Americans household wealth hit record highs in the second quarter of 2019. Stock prices are near record highs after the Federal Reserve have cut rates and investors ignore global economy slackness from the trade war and Brexit.

US building permits for August came in at 1419 K v a 1300K estimate and Housing starts were 1364K v a 1250K estimate. Both building permits and housing starts are at their highest since 2007

The US Labor Department August jobs report on Friday came in lower than expected at 130k v 165,000 NFP jobs added. In August the US added 3,000 manufacturing jobs . Unemployment stayed at 3.7% just off the lowest since December 1969. Private payrolls added 96,000 new jobs.

The US manufacturing sector via the regional Chicago ISM Manufacturing PMI contracted under 50 to the lowest since January 2016 in August. Employment index lowest since March 2016. New orders lowest since June 2012

South Korea continues to be hit by the Chinese US trade war with it's 9th consecutive monthly drop in it's exports. In August it's trade surplus plunged to USD 1.72 billion from USD 6.82 billion in the same month a year earlier.

Chinese manufacturing  contracted for the fourth straight month on the eve of the US increasing tariffs on Chinese goods and China's reciprocal tariffs. The Official NBS Manufacturing PMI in China dropped to 49.5 in August 2019 from 49.7 in Julyh and below market expectations of 49.6.

US MBA mortgage applications for the week ending 9 August jumped 21.7% up from a rise of 5.3% the prior week. With mortgage rates back to a three year low refinancing activity surged to a three year high fueling the activity.

The German economy is faltering as we have seen with PMI and sentiment. Brexit and trade wars helped Germany Q2 preliminary GDP come in negative as expected triggering further selling in the German DAX and world stockmarkets already down after a big miss in Chinese growth.

US Consumer price inflation (CPI) for July was 0.3% as expected. YoY was 1.8% up from 1.6%. However real average earnings rose 1.3 y/y from 1.5% last month. The two month core CPI was the most since April 2006.

Google ads