Dow went up 26, advancers over decliners 3-2 & NAZ added 14. The MLP index was off 1+ to the 204s & the REIT index inched higher in the 463s. Junk bond funds were flattish & Treasuries saw a little selling. Oil slid back to the 91s after its latest rally & gold rose 8 to 1816.
AMJ (Alerian MLP index tracking fund)
|
|
Consumers are feeling far more negative about the housing market this
winter, as home prices continue to rise & now mortgage rates move
higher as well. A monthly survey from Fannie Mae showed home
purchase sentiment in Jan fell to its lowest level since May 2020,
at the start of the pandemic. Weaker affordability is clearly the
problem. Just ¼ of respondents said now is a good time to buy a home, a
record low. On the flip side, 69% said now is a good time to sell. Home
prices are still gaining & the gains are still accelerating. The
latest measure showed prices nationally up 18.5% in Dec, according
to CoreLogic. That’s up from an 18.1% annual gain in Nov. Home
price appreciation more than doubled last year, averaging 15% for the
full year, compared to just 6% appreciation in 2020. Respondents to the Fannie Mae survey also reported greater concerns about job stability & the future of mortgage rates. Rates
began rising at the start of Jan & the average rate on the
popular 30-year fixed loan is now 3.78, just over a full percentage
point higher than it was one year ago, according to Mortgage News Daily. The rate is 58 basis points higher than the start of this year & will
likely continue to climb as the Federal Reserve dials back its
purchases & holdings of mortgage-backed bonds. That support of the
mortgage market, just after the pandemic began, kept rates at record
lows for over a year, fueling demand for housing & boosting prices.
A record low number of consumers say now is a good time to buy a home
The ECB could end its stimulus programme earlier than planned but it is unlikely to raise its main interest rate in Jul as investors are expecting, ECB policymaker Martins Kazaks said. Investors have brought forward their bets on the bank's first rate hike in more than a decade after ECB Pres Christine Lagarde opened the door to such a move & acknowledged mounting inflation risks. But Kazaks, who is Latvia's central bank governor, pushed back against market bets on a Jul move because this would imply a complete winding down, or “tapering” of the ECB's bond purchases before that date. “July would imply an extremely and unlikely quick pace of tapering,” Kazaks said. “But overall, at the current juncture, naming a specific month would be much premature.” The ECB has long said it would end its bond purchases “shortly before” raising its deposit rate from minus 0.5%, & Lagarde.& colleagues have reaffirmed that commitment in recent days. Asset purchases are currently set to run at least until Oct although sources have said the ECB is likely to bring that date forward at its Mar 10 meeting. With euro zone inflation at a record 5.1% in Jan - more than twice the ECB's 2% goal - Kazaks was also open to action.
ECB’s Kazaks says July rate hike is unlikely
As global powers have scrambled to prevent all-out war between
Ukraine & Russia, Germany has been accused not only of failing to take
a leadership role in diplomatic efforts, but also of actively failing
to help defend Ukraine from a possible attack. The US & UK
are among the countries that have send military hardware to Ukraine to
help it defend itself in the case of an invasion. Russia denies it is
planning such a move, despite mobilizing many tens of thousands of
troops in the area. Germany
has refused to send help, however, & has reportedly blocked others
from doing so. That has lead to accusations that it has not shown
Ukraine — which is not a member of the EU or NATO but is geographically
within Europe — enough solidarity. Andrij Melnyk, Ukrainian ambassador to Germany, said that Germany has to “wake up” to the dangers facing Ukraine. “We
think that the world is becoming more dangerous and Germany, as the
biggest European country and the strongest economic power, cannot allow
itself to stay neutral and to go on sleeping and enjoying a comfortable
life,” he added. “Germany has to
wake up, Germany has to stand by its allies and Germany has to do much
more for security in Europe and in this particular moment where a new
war can break out in the heart of Europe, Germany has a special role to
play.” The ambassador added that Germany should join allies in
sending defensive weapons to Ukraine & to “help prevent this new war
that Russia is apparently playing.”
Germany urged to ‘wake up’ over Ukraine-Russia crisis, before it’s too late
Trading is quiet today. Earnings will keep coming this week along with the consumer & producer price inflation data for Jan. That should provide excitement.Dow Jones Industrials
No comments:
Post a Comment