BoE minutes is the focus today
Wise Money starts with news from the US housing sector with government figures reporting the annual pace of Housing Starts at 965k in July, the lowest annual rate in 17 years.
While this was slightly more than market expectations, building permits were reported down 17.7 percent at 937k and well below forecasts of around 970k. To add to the woes for the US Fed Reserve, persistent inflationary pressures were reported in the form of the PPI figure where US wholesale prices shot up at the fastest year-on-year rate since 1981.
Prices at the factory gate climbed 1.2 percent in July but it was the core producer prices, which exclude food and energy, which had the biggest impact rising 0.7 percent after a 0.2 percent increase in June.
Market expectations here were for a rise of 0.2 percent again and this figure gave little comfort to the US Fed Reserve, which is hoping a slowing economy will stave off inflationary pressures and enable rates to stay on hold.
Recent declines in EURUSD and oil appear to have given comfort to German and Euro-zone economic sentiment. The ZEW survey was better than expected coming in at -55.7 showing market participants are not as negative on the European and German economy as before.
However, the German ZEW Current Situation figure was well below expectations at -9.2 and indicates that sentiment is still to the downside with weaker growth and higher inflation being the main drag.
Here in the UK we will see how the Bank of England's MPC voted when they met a few weeks back when the minutes are released today (9.30am). Previously the vote was split 7 to hold, 1 to cut rates and 1 in favour of an increase in rates.
As with the Fed in the US, the Bank of England faces the same concerns of persistent inflation and slowing growth but the recent Inflation report contained a dovish tone which will make it likely the bulk of the MPC voted to keep rates on hold.
Other snippets of UK data today come in the form of Public finances and CBI industrial trends but it will be the BoE minutes that the market takes direction from.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
While this was slightly more than market expectations, building permits were reported down 17.7 percent at 937k and well below forecasts of around 970k. To add to the woes for the US Fed Reserve, persistent inflationary pressures were reported in the form of the PPI figure where US wholesale prices shot up at the fastest year-on-year rate since 1981.
Prices at the factory gate climbed 1.2 percent in July but it was the core producer prices, which exclude food and energy, which had the biggest impact rising 0.7 percent after a 0.2 percent increase in June.
Market expectations here were for a rise of 0.2 percent again and this figure gave little comfort to the US Fed Reserve, which is hoping a slowing economy will stave off inflationary pressures and enable rates to stay on hold.
Recent declines in EURUSD and oil appear to have given comfort to German and Euro-zone economic sentiment. The ZEW survey was better than expected coming in at -55.7 showing market participants are not as negative on the European and German economy as before.
However, the German ZEW Current Situation figure was well below expectations at -9.2 and indicates that sentiment is still to the downside with weaker growth and higher inflation being the main drag.
Here in the UK we will see how the Bank of England's MPC voted when they met a few weeks back when the minutes are released today (9.30am). Previously the vote was split 7 to hold, 1 to cut rates and 1 in favour of an increase in rates.
As with the Fed in the US, the Bank of England faces the same concerns of persistent inflation and slowing growth but the recent Inflation report contained a dovish tone which will make it likely the bulk of the MPC voted to keep rates on hold.
Other snippets of UK data today come in the form of Public finances and CBI industrial trends but it will be the BoE minutes that the market takes direction from.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
Labels: Bank of England, home loans, interest rates, New Home Sales
posted by Wise Money @ 6:44 PM
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