Stocks in UK and Europe advanced this morning ahead of the IHS Markit Flash Eurozone purchasing manager’s index (PMI®) data which has just been released (9am UK) with the headline “Eurozone business activity stagnates in September as rebound falters”.
- The Stocks of crude oil in the United States increased by 0.7 million barrels in the week ended September 18th, 2020, after a 9.5 million draw in the previous week and compared with market expectations of a 2.3 million drop, data from the American Petroleum Institute showed.
- The number of coronavirus-related deaths in the US has surpassed 200,000 on Tuesday. The nation leads the world in both deaths and confirmed cases, with over 6.8 million infected. Globally, the number of confirmed cases of coronavirus around the world surpassed 31.3 million, of which more than 965 thousand have died and over 21.5 million have recovered.
- Sales of previously owned houses in the US increased 2.4% from the previous month to a seasonally adjusted annual rate of 6 million units in August of 2020. That is the highest reading since December of 2006 and in line with expectations. Single family sales went up 1.7% and those of condos 8.6%. Home sales have climbed in every region for the third straight month. There were 1.49 million previously owned homes on the market in August, down from 1.83 million a year ago. The median existing house price increased to a record USD 310,600. Year-on-year, existing home sales went up 10.5%. “Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market. Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery. The need for housing will grow even further, especially in areas that are attractive to those who can work from home”, Lawrence Yun, NAR’s chief economist said
- The Confederation of British Industry’s order book balance dropped four points to -48 in September 2020, below market expectations of -40, suggesting the manufacturing sector remained severely depressed despite the country’s reopening efforts. The outlook for production over the next three months also weakened.
- On Tuesday: European stocks rebounded after suffering their biggest drop since June the previous day on concerns over coronavirus restrictions and diminishing prospects for economic stimulus. The British pound recovered some lost ground as Bank of England Governor Andrew Bailey downplayed the prospect of negative interest rates in the future. US stocks moved mostly higher in morning trading, regaining ground following the weakness seen in the previous session. The strength on Wall Street comes after Federal Reserve Chair Jerome Powell said the central bank remains “committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible.”
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