The KUIK Morning Market Report for Friday, December 16:
Markets are up.
Index
Direction
Change
Units
Time
Dow
Up
48
points
19,900
7:14 AM
S&P500
Up
0.1%
percent
2,264
Nasdaq Composite
Up
0.1%
percent
5,464
30 Year Treasury
Up
3
Basis Points
3.17
Annual Yield
The Commerce Department reports housing starts fell 18.7% to a seasonally adjusted annual rate of 1.09 million. Economists expected 1.24 million. October’s pace was a nine-year high. It was revised upward to 1.34 million annually, but November was 6.9% lower compared to 2015.
Marketwatch reports the Federal Reserve’s interest rate hike and its guidance that it will accelerate hikes in the coming years have cast a shadow on prospects for the Chinese economy and are expected to prompt Beijing to take further measures to curb capital outflows. The Fed on Wednesday raised the fed funds target rate by a quarter point to between 0.5% and 0.75%. The announcement sent the yuan to its weakest rate against the dollar since June 2008. Analysts expect the yuan to be under continued pressure to depreciate. Chinese policy makers are grappling with money fleeing the country and may add more capital controls.
Stocks closed mixed in Asia. Japan’s Nikkei ended 0.7% higher, after reaching its highest level since December 2015 earlier in the session. In Europe, stocks are just below their 2016 high.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
