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June 15th - U.S. homebuilder confidence declined further in June, driven by rising mortgage rates and building material costs, while confidence in the southern region deteriorated significantly. Data released Monday by the National Association of Home Builders (NAHB) and Wells Fargo showed that the housing market index, which measures overall market conditions, fell 2 points to 35 this month, below market expectations. As the largest homebuilding region in the U.S., the South saw its largest drop in confidence since November 2023. The NAHB stated that June marked the 14th consecutive month the index had remained below 40, the longest sustained period of weakness since 2011-2012. Looking at the sub-indices, the current sales conditions index fell 2 points to 38, while future sales expectations and potential homebuyer visits remained unchanged. The NAHB attributed the overall index decline to rising building material prices, increased financing costs, and regulatory factors hindering home construction.The UN Security Council voted to extend the mandate of the UN mission in Afghanistan for another year.EUROSAM (European Air Defence Corporation) is negotiating with Hungary and Kuwait on alternatives to the Patriot air defense missile system. A progress meeting will be held to discuss EU review.The U.S. NAHB Housing Market Index for June was 35, below the expected 36 and the previous reading of 37.SpaceX (SPCX.O): Underwriters exercised their option to purchase an additional 83.33 million shares. SpaceX raised approximately $85.7 billion in its initial public offering.

In a risk-on environment with a weaker US dollar, WTI consolidates weekly losses above $83,000

Alina Haynes

Sep 09, 2022 17:17

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The price of WTI crude oil is higher for the second day in a row while paring the weekly losses at the eight-month low on Friday during the Asian session. However, by the time of publication, the black gold has reached a new intraday high of around $83.50.

 

Recent news reports from the US Treasury Department regarding the oil price cap appear to have helped drive up energy prices together with stronger sentiment and a weaker US dollar. According to the US Treasury source, "the oil price cap should be set above the marginal production cost, taking into account past Russian oil prices."

 

In other news, stronger sentiment and slow US Treasury yields cause the US Dollar Index (DXY) to fall intraday by 0.55%, to 109.05 at the latest. It's interesting to see that after a solid day, the US 10-year Treasury yields are still stuck around 3.32%, while the S&P 500 Futures tracks Wall Street's gains at approximately 4,020.

 

Recent market sentiment appeared to be aided by remarks made by US Treasury Secretary Janet Yellen, which suggested that trade relations between the US and China were set to improve. The market's attitude also appeared to have been aided by recently stronger US statistics and expectations that global central bankers will be able to offset the shock caused by inflation with a comprehensive strategy and higher rates. The Wall Street Journal (WSJ) article, on the other hand, raises some concerns about the future of China's technological enterprises and casts some doubt on the optimism.

 

A price document examined by Reuters on Friday revealed that Kuwait has decreased the official selling prices for its oil grades for the month of October from the previous month. Before the present program ends in October, US Energy Secretary Jennifer Granholm said the administration of US President Joe Biden is considering whether additional releases of crude oil from the country's emergency stockpiles are necessary. Prior to that, a Department of Energy official reportedly told Reuters that the White House was only considering releasing the 180 million barrels from the US Strategic Petroleum Reserve (SPR) that the president had already stated.

 

It should be highlighted that the recent decline in China's inflation data, coupled with the hawkish central bank activities, presents a challenge to oil purchasers. Both China's Producer Price Index (PPI) and Consumer Price Index (CPI) show unfavorable results for August. However, compared to 2.8% market expectations and 2.7% in the prior year, the headline CPI declined to 2.5% YoY, and the PPI fell to 2.3% from 3.1% projected and 4.2% in the preceding year.


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