Rolling coverage of the latest economic and financial news, as stocks suffer their worst December in decades
- Latest: More fund managers expect global growth to weaken
- IFO survey shows German confidence down
- FTSE 100 falls in early trading
- Investors worried about global economy, and Fed rate hikes
- Asia-Pacific stocks drop as Xi disappoints
Economist Ian Shepherdson makes a good point about the US housing stats:
*All* the drop in single-family housing starts in November was in the West; hard to imagine this was not due to the wildfires. Elsewhere, single-family starts up 3%, permits unchanged. Reports of the death of the housing market are greatly exaggerated. pic.twitter.com/wdXzUMWvOx
Just in: Home construction in America accelerated last month, in a sign that the economy can handle higher interest rates (whatever Donald Trump tweets).
New housing starts jumped by 3.2% last month to an annual rate of 1.256 million, the Commerce Department says. That’s a seven-month high.
These figures could weigh a lot on tomorrow’s interest rates decision by the #FED #FOMC as the ongoing rising cost of borrowing in the US are taken as one of the main cause of real economy’s slowdown, especially in financial and real estate business @graemewearden @bpprimeuk
A data dependent Fed is likely to interpret the Nov US housing starts & permits data as in line with their forecast of solid growth and supportive of a rate hike tomorrow.