Tuesday's Markets Update (June 27. 2023)

28 Jun 2023 by rate3

On Tuesday, Durable Goods orders, the Case-Shiller Index, and New Home sales unexpectedly jumped, driving the NASDAQ (o: 13,389, c: 13,555) higher by 1.2%. Meanwhile, BTC (o: 30,713, c: 30,648) continued to drift sideways.

Details: Durable goods orders rose 1.7% in May, with transportation equipment leading the increase. Nondefense aircraft and parts orders rose 32.5%, while orders for other transportation equipment rose 2.2%. Excluding transportation, orders rose 0.6%, with nondefense capital goods orders up 6.7%. Orders for nondefense capital goods excluding aircraft rose 0.7%.

The S&P Case-Shiller 20-city home price index increased by 1.7% MoM in April - 3rd month of rising prices. This is a sign that the housing market is continuing to strengthen, despite rising mortgage rates and other headwinds. The index measures the change in home prices in 20 major metropolitan areas across the country. In April, all 20 cities saw their home prices increase, led by Phoenix, which saw prices rise by 3.2%. Other cities with strong gains included Miami (2.9%), Tampa (2.8%), and Las Vegas (2.7%). The increase in home prices is being driven by a number of factors, including low inventory, strong demand from buyers, and rising wages. However, rising mortgage rates could start to weigh on the market in the coming months.

Also, new home sales jumped 12.2% in May (to 763K), beating expectations (0.675M). Sales increased across all regions, with the biggest gains in the Northeast and West. The median price of new homes sold was $416,300.

Other Markets Updates:

Italy: Annual inflation rate fell to 6.4% in June, the lowest in 14 months. The decline was largely due to base effects, as energy costs have retreated from their June 2022 peaks. The CPI slowed significantly for non-regulated energy, processed food, and transportation services. However, consumer prices continued to accelerate for unprocessed food, limiting a further slowdown to inflation. The core rate eased to 5.6%. The CPI was stagnant on a monthly basis.

Germany: Consumer sentiment deteriorated in July, with the GfK Consumer Climate Indicator falling to -25.4. This was the first decline in nine months, and was driven by a drop in economic and income expectations. Persistent high inflation is eroding households' purchasing power, hindering private consumption. However, there was a marginal increase in the propensity to buy.