U.S. home prices once again jumped the most in more than 30 years. The S&P CoreLogic Case-Shiller index of property values nationwide surged 18.6% in June from a year earlier. That followed a 16.8% gain in May and was the 13th straight month that price gains accelerated. June’s increase was the largest in data going back to 1988 as buyers, armed with cheap mortgages, competed for a tight supply of homes, fueling bidding wars across the country. “The last several months have been extraordinary not only in the level of price gains, but in the consistency of gains across the country,” said Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices. “The strength in the U.S. housing market is being driven in part by reaction to the Covid pandemic, as potential buyers move from urban apartments to suburban homes.”
Euro zone inflation surges to 10-year-high, in headache for ECB
Euro zone inflation surged to a 10-year-high in August with further rises likely, challenging the European Central Bank's benign view
on price growth and its commitment to look past what it deems a temporary increase. Consumer inflation in the 19 countries sharing
the single currency accelerated to 3% this month from 2.2% in July, moving well clear of the ECB's 2% target. The increase was
fuelled by energy costs, food prices and prices of industrial goods. Markets mostly shrugged off the data, with stocks rising and
yields increasing just a basis point or two, suggesting the narrative of temporary inflation and ultra-easy central bank policy for years
to come.
Japan's Aug factory activity growth slows on resurgence of COVID-19 - PMI
Japan's factory activity expanded at a slower rate in August as a resurgence of coronavirus cases in Asia disrupted supply chains
across the region, sinking overseas orders into contraction for the first time in seven months. Manufacturers withstood the
pandemic's hit in part thanks to their positive outlook for the coming twelve months, even as the highly infectious COVID-19 Delta
variant is pushing countries in Asia-Pacific back into lockdown mode. The final au Jibun Bank Japan Manufacturing Purchasing
Managers' Index (PMI) in August eased to 52.7 from 53.0 in the previous month. "A sharp rise in COVID-19 cases in South East Asia
was among the key factors listed by Japanese manufacturers for the easing in demand," according to IHS Markit.
Dollar Up, but Fed Asset Tapering Move Guessing Game Keeps Moves Small
The 10-year government bond yield (interpolated) on the previous trading day was 1.585, -1.50 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.60, +1.00 bps. LB31DA could be between 1.57 -1.61. Meantime, the latest closed US 10-
year bond yields was 1.30%, +1.00bps. USDTHB on the previous trading day closed around 32.25 Moving in a range from 32.22-
32.40 this morning. USDTHB could be closed between 32.30-32.40 today. Meantime, The dollar was up on Wednesday morning in
Asia but was trading near its lowest point in nearly three weeks. Investors continued to keep moves small, with the latest U.S. jobs
report, which could provide clues to the U.S. Federal Reserve’s asset tapering timeline, due on Friday.
Sources : Bloomberg, CNBC, Investing, CEIC
