Home > Oct 2017 > Oct 24, 2017 Copper had a good night in China, Futures are slightly green..that shouldn’t last

Oct 24, 2017 Copper had a good night in China, Futures are slightly green..that shouldn’t last

October 24th, 2017

Shanghai Futures pushed up copper over 2% with a Yuan Fixing Up to weaken the dollar. Japan continues to Party over the election. Tonight, FLASH PMI’s out of Europe are beating estimates with EU FLASH PMI at 58.6 vs an expected 57.8. What is surprising is that Gold and the Aussie/USD is selling off?? Aussie is announcing that it wants to add regulations to Cyptocurrencies but that isn’t the reason. Strange Session because with the rally in metals and stronger FLASH PMI you would expect a rally in Aussie and Kiwi vs USD. Without the Aussie pushing up, IMHO any rally attempt will be short lived. CAT and McDonald’s report before bell. China Congress is finishing today! (no need to hold it up anymore, lol).

Oct 2017

  • Trading_Nymph

    From Shanghai Daily…NEW home prices in China’s 15 hottest markets stopped rising for the second consecutive month in September as policies designed to curb speculation continued to work.

    Tianjin, Nanjing, Shenzhen and Chengdu were the cities where the price of new homes remained unchanged from August while the other 11 all registered decreases ranging from 0.1 percent to 0.6 percent, according to the National Bureau of Statistics, which tracks property prices in 70 major cities.

    On a yearly basis, signs of cooling continued with all 15 cities recording slower growth or larger decreases.

    New home prices in Beijing and Guangzhou rose 0.5 percent and 9.4 percent, respectively, from the same period a year ago, compared with the increases of 5.6 percent and 13.3 percent registered in August.

    In Shanghai and Shenzhen, property prices fell 0.1 percent and 3.8 percent in September from a year earlier, compared with a gain of 3.2 percent and a decline of 2 percent in August.

    “Across the country, first-tier cities continued to record month-on-month price decreases in both new and pre-occupied markets while either unchanged or slower growth was registered in second and third-tier cities, as rein-in measures remained effective,” the bureau’s statistician Liu Jianwei said yesterday.

    Nationwide, 18 out of the 70 cities witnessed month-on-month price drops in their new home markets, unchanged from August.

    In the pre-occupied housing market, 13 cities suffered price setbacks from a month ago, an increase of two from August, according to the bureau.

    On a monthly basis, new home prices in the 70 monitored cities rose 0.19 percent on average in September, down 0.05 percentage points from August. On a yearly basis, new home prices rose 6.53 percent on average, a slowdown of 1.7 percentage points from August.

    “On both a monthly or yearly basis, third-tier cities posted the fastest price growth while first-tier cities showed the most obvious signs of cooling, indicating differentiated tightening policies implemented in different areas of the country,” Xia Dan, a senior researcher at the Bank of Communications, wrote in a report.

    “Since late September, a number of second-tier cities, including Chongqing, Nanchang, Changsha, Xi’an and Guiyang, as well as some third-tier ones such as Guilin and Beihai have rolled out further control measures — mainly by introducing a lockup period for home sales — as amendment to earlier policies.”

    Chinese authorities have constantly reiterated that “houses are built to be inhabited, not for speculation.”

    At a press conference on the sidelines of the 19th National Congress of the Communist Party of China, Minister of Housing and Urban-Rural Development Wang Menghui said the property market would see stabilizing prices and slower growth in transaction volume in the fourth quarter.

    The government will not waver in its efforts to achieve the goals of property market regulation and will maintain continuity and stability of policies, Wang said.

    Authorities are studying a “long-term mechanism” for real estate regulation and advancing legislative work on the development of the home rental market, Wang said.

    He pledged to move faster to implement a housing system that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both purchases and renting.

    New home sales in China expanded by a slower pace in the first nine months, according to data released last week by the bureau.

    About 7.6 trillion yuan (US$1.2 trillion) of new homes, excluding government-subsidized affordable housing, were sold from January to September, a year-on-year increase of 11.4 percent. That compared with a 14.2 percent increase in the first eight months.

    The area of new homes sold in the nine-month period rose 7.6 percent from a year earlier to 1 billion square meters, also down from a 10.3 percent increase in the first eight months, bureau data showed.

    The property market was also cooled by relatively tight liquidity conditions as the government moved to contain leverage and risk in the financial system.

    Data from the People’s Bank of China showed that loans to China’s real estate sector continued to grow at a slower pace, with outstanding loans up 22.8 percent year on year to 31.1 trillion yuan at the end of September, 1.4 percentage points lower than the rate at the end of June.

    Despite the cooling measures, China’s economy expanded a robust 6.9 percent year on year in the first three quarters of the year, well above the government’s target of 6.5 percent for this year.

    BusinessReal Estate

  • panther341

    3 DJIA stocks reported earnings this morning: CAT, MCD, and UTX. Most impressive was CAT. MCD was good also. UTX wasn’t bad.

    Former DJIA component GM also reported this morning and stock is up. We will see if they sell it.

    Very busy week for earnings.

  • panther341

    CAT at least a 20 year high. Probly all time high.

    Last time GM was this high: 2004.

    MCD at least 20 year high.

    UTX all time high was in July.

  • panther341

    Then there is GE which reported last Friday. And will probly cut the dividend. down 30+% for the year.

  • panther341

    For an ugly chart of the day – see WHR. Sears will no longer sell WHR appliances. http://www.marketwatch.com/story/whirlpool-earnings-miss-sends-its-shares-and-credibility-plummeting-2017-10-24

    Sears doing business with AMZN is a big deal. Plus it sounds like WHR management made promises and didn’t deliver – said in context of lowering guidance 3 quarters in a row and not meeting lowered guidance.

  • panther341

    For the record – I will be rooting for the Astros in World Series. I understand it is HOT in LA for the first 2 games. The Astros were complaining it was cold in New York to play the
    Yankees. Houston is only about 80 degrees right now which is pretty
    much seasonal.

    I am old enough to remember that the Dodgers used to be in Brooklyn and there were no baseball teams on the West Coast. There was still the New York baseball Giants – which is the reason some still refer to the New York football Giants. LOL

  • panther341

    HD – appliance retailer – is very close to its all time high today. (like the high today so far was 0.17 off the all time high – that’s close on $166.00 stock.

  • Trading_Nymph

    lol DODGER BLUE all the way.(even though I am not a sports person at all). Hard to imagine the Dodgers not being in Los Angeles. Just a fixture my entire life. Lol, Freeway (5 and 110)is beyond not moving “must be a Dodger Game”. And of course you are a Texan, so I would expect you to be on the side of the Astros, lol.

  • Trading_Nymph

    It is ugly. I am really surprised that Sears on AMZN is a big deal. You can just go to Sears Online and get the same prices.