Chillin' out till it needs to be funded
Europe was positive thru the morning trades and in Asia India closed up positive as the 0830 EDT report from the Census bureau further boosted Market prospects ith the Building Permits annual growth continuing at nearly 20% and Housing starts finally jumping to better prospects (though everyone would be exaggerating this miniscule improvement by talking about it) taking its annual growth rate to just below 25%. Building Permits came in at 755,000 from 785,000 in May much higher than the 600k levels in 2011 and Housing Starts revised to 711,000 for May scored 785,000 in the month of June
Housing Starts numbers continue to show hope for Single Family housing as they take 539,000 of this month’s starts though Multi Family units remain as strong as earlier at 213,000. The optimism in the Housing markets and the finishes mostly come from rental units tracking in completed Multi Family units despite the low mortgage rates. The Home Builder confidence came back to its best scores at 35 but is way behind the atermark of 50 where it starts counting to growth.
Housing completions have grown only slightly above 10% in the year to 622,000 the West and the North East (Boston, New York) are the only 2 of the Four per this report that show secular growth though South counts the most Permits and starts in the period and in terms of growth from 2011 also the South and the MidWest fall behind
States in the Great plains meanwhile including North Dakota, Wyoming and Nebraska in the meantime showw better Economic traction including almost full employment
Also in other international data releases, the BRICS seem better placed with South Africa catchingup on retail sales /
consumption growth with a 6% groth in June instead of May’s 1.1% that had continued to raise questions. Coke and other multinational US corporations would be looking at improving their share performances this year on the basis of their share of market in the BRICS territories as in 2010 and 2011
Foreign investor interest in the US continues to increase though bond auctions seem to see a weaker trend at all time low yields with June getting in $105 B from investors, $55 B in excess Treasuries bought by International investors over those bought by US investors overseas and the rest in T Bonds Auctions
French and Spanish government auctions test the market’s confidence on Thursday. The Beige Book for June comes out later in the afternoon.