Housing starts rose 6.3% last month, primarily due to construction of multi-family units, according to this morning’s update from the US Census Bureau. The single-family slice of starts, by contrast, rose just 1.1% last month vs. August. The multi-family growth bias looks set to persist, based on the September data for newly issued housing permits. New permits overall rose a tepid 1.7% last month as single-family permits retreated 0.5%; fresh authorization to build multi units of five or more, however, jumped 7.0% in September vs. August. It’s fair to say that the housing market’s growth rate has slowed in general and that’s not likely to change anytime soon. But the key point in today’s report remains upbeat, albeit moderately so via a gentle tailwind that’s blowing in residential construction activity.
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The crowd’s been repricing Treasuries lately on expectations that deflation risk is on the rise… again. But there’s no sign of it in the latest economic reports for the US. Why the disconnect? Treasuries, for good or ill, reflect fear and greed for a global audience as well the folks in Peoria. As a result, America’s relatively upbeat macro profile is an afterthought these days for traders in the Treasury market. Is that about to change?
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● Stocks Stage Positive Reversal, Wiping Out Early Losses | IBD
US stocks made several U-turns Thursday, eventually closing just above the break-even line.
● Data shows U.S. economy’s pulse is still strong | Reuters
The number of Americans filing new claims for jobless benefits fell to a 14-year low last week and industrial output rose sharply in September, positive signals that helped ease fears over the economic outlook.
● WTI Rebound Above $80 Holds as Goldman Sees No Oil Glut | Bloomberg
West Texas Intermediate crude held gains above $80 a barrel as Goldman Sachs Group Inc. said the market isn’t oversupplied. Brent was steady in London.
● World braces as deflation tremors hit Eurozone bond markets | The Telegraph
Eurozone fears have returned with a vengeance as deepening deflation across Southern Europe and fresh turmoil in Greece set off wild moves on the European bond markets.
● Bank of England says keep interest rates low for now | BBC
Interest rates should remain low to avoid long-term economic stagnation, the chief economist at the Bank of England has said.