U.S. equities opened marginally firmer U.S. equities opened marginally firmer after a number of cross-currents swept across the markets in earlier trade. Among them were the headline drop in durables, followed by relatively hawkish Fed Powell remarks and a rebound in yields and the dollar. Those created some headwinds for stocks, though european markets remained bullish, with the Euro Stoxx 50 up around 1%, while Athens is another 4.5% higher on hopes that a Greek deal will be cemented this week. Volatility was the word in China after margin requirements were boosted, followed by a plunge and rebound in stocks there that left the Shenzhen 3.2% higher and the Shanghai Comp up 2.1%, with Japan's N-225 1.7% firmer on the weak yen. Up next are new home sales and the Richmond Fed index.
U.S. New Home Sales Preview U.S. New Home Sales Preview: May new home sales should reveal a 1.0% decline to a 512k (median 520k) unit pace for the month following the 6.8% bounce to a 517k pace in April. Despite Monday's firm existing home sales figures which had the headline pace up 5.1% there is still downside risk from the NAHB decline to 54 in May and the fall in housing starts to 1,036k from 1,165k in April.
U.S. FHFA home price index rose 0.3% to 221.67 in April U.S. FHFA home price index rose 0.3% to 221.67 in April after the same sized rise to 221.06 in May (revised from 221.0). Home prices are up 5.3% y/y.