The latest reading of the S&P Case-Shiller Home Price Index composite of 20 major US cities showed that prices surprisingly fell month over month, contracting by -0.20% according to the seasonally adjusted figures. Annualized price gains held constant at 4.90% missing expectations of a 5.60% climb. More concerning than the surprising slide in the monthly figure was the latest revelations that American home ownership rates dropped to the lowest level since 1967 despite median American rents rising to a record $803 per month as American housing continues the transition from a buyer’s market to a rental economy. Moreover, the dive in consumer confidence figures underlines that the economic recovery remains elusive for most Americans after confidence tumbled from 99.8 to 90.9. Stocks managed to snap a three-session losing streak with the uptick in crude oil spurring a rally in equity benchmarks with the Dow Jones Industrial Average closing up 1.09%.
Markets Tentative Ahead of FOMC Decision
Daily Analysis - 29/07/2015