• US House and Senate agree on the terms of a financial overhaul bill (Washington Post)
• Swiss Franc climbed to a fresh record high against the Euro, rising 1.5% this week (FT)
• US consumer sentiment increased to 76, the highest since January 2008 (Bloomberg)
• Australia's new prime minister, Julia Gillard, first woman to lead her country (Reuters)
• BP market losses hit $100 billion on spill cost fears, stock at 14 year low (Reuters)
• US government lowers growth estimate for 1st quarter, up 2.7% (AP)
• Industrial new orders up by 0.9% in the Euro area (Eurostat)
• US durable goods orders in May 2010 decreased 1.1% from April, to $192 bn (ESA)
• US 30-year fixed mortgages rates fall to 4.69%, lowest level on record (AP)
• UK Banks hit by £2bn annual levy, starting in January 2011 (FT)
• US new home sales plunged 33% in May as tax credits expire (AP)
• China unshackles its currency, the yuan, ahead of the G20 meeting (Reuters)
|Weekly Market Barometers|
Chart Of The Week
A number of difficult economic data hit the wires this week. The revised GDP data, lower durable goods orders and gloomy news from the housing sector put a damper on the market. As expected, the expiration of the tax credit for new home purchases in the US led to a sharp decrease in New Home Sales. The May figures declined to a seasonally adjusted annual rate of just 300,000, a 33% decline and the smallest number of homes sold on record. At the same time, 30-year fixed mortgages rates fell to 4.69%, a record low as well. If lower home prices and record low financing rates cannot stimulate the housing market, should you still follow the advice of Jim Gillespie, CEO of Coldwell Banker, when he says: Now's the "Absolute Best Time" to Buy a Home...
Good luck and good investing!
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