Year-End Seasonal Trap
The markets got good news on housing, as builders' confidence rose to an 18-year high and November's new home starts outpaced economists' predictions. The other big news is the expected passage of the widely-anticipated tax reform bill either today or tomorrow. Yet that has pretty well been factored into prices at this point, so US shares took a breather in early trading.
This follows mostly lower prices in the overnight, foreign markets. The Asia Dow fell 0.02%, despite good gains in China, India, and 10-year highs in Australia. Europe's STOXX 600 dropped 0.42%. Though the UK's FTSE index rose slightly, a negative confidence reading from Germany's business community dampened enthusiasm on the Continent.
Fixed income assets sold off, with the 10-year T-note’s yield jumping to an 8-week high of 2.455%. The strong housing report set the weak trend early on, and prices were unable to recover. The euro, pound, and yen all ... Log in or subscribe to continue reading.
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