Economy

Google Ad

After a series of weak housing data we get a chance to gage if this is just a breather or we are in for a more servere housing pullback. Ahead are earnings from KB Home $KBH, mortgage applications, house Prices, existing home sales and new home sales.

US February housing starts fell more than expected to 1236K vs 1290K expected, a fall of 7% vs a fall of 2.7% expected. Housing numbers have been falling for a few months after a big jump in 2017 and the Fed rising rates. Permits were also weaker.

Canadian Prime Minister Trudeau loves to complain about Trade Wars as NAFTA negotiations drag on and America launched steel and aluminum tariffs, all be it exempting Canada. Well it turns out Canada's biggest ally, Australia has been the victim of Canadian hypocrital trade barriers on it's wine.

U.S. President Trump announced that Australia would not be subject to the newly implemented American tariffs on steel and aluminum. Australia had used diplomatic pressure to save Australian steel. Trump said he will spare "the great nation of Australia" from the import levy.

February non farm payrolls added 313,000 jobs, the most since July 2016, what will the Fed be looking for in February's Employment report? Hourly earnings came in lower taking pressure off inflation but what of other risks?

President Donald Trump as expected signed into law tariffs on steel and aluminum in a move he feels will recharge American industry. The deal exempts NAFTA partners Canada and Mexico as expected. National security was also cited as part of the decision.

The European Central Bank (ECB) latest forecasts show slightly higher growth this year but lower inflation in 2019. President Draghi in the opening of his statement talked about stronger growth in the ECB to 2.4% from 2.3%.

Treasury Secretary Steve Mnuchin speaking before the House appropriations committee said that if NAFTA negotiations are successful the steel tarriffs will not apply to Canada or Mexico. This is largely in line with what President Trump said yesterday.

The 2015 Liberal platform said they would balance the budget in 2019 and have a $1 billion surplus. WIthout the budget balancing itself, $18.1B is the projected deficit for 2018-19.

Warning bells from the housing market with US January new home sales coming in at 593K, much lower than 648K expected from 643K last month (revised up from 625k). In percentage terms sales were -7.8% an expected +3.6% rise.

Google ads