- The market is concerned about the new coronavirus epidemic and vaccine progress.
- Compared with a year ago, pending home sales in the United States jumped 20.2% in October.
- The Dallas Fed said expectations for future business conditions remained positive in November.
This week, the Dow Jones Industrial Average gained 12%, the biggest monthly gain since 1987, the Nasdaq gained 11.8%, the biggest monthly gain since April, and the S&P 500 gained 10.8%, the best November performance in history. However, US stocks collectively closed down Monday.
The market is concerned about the new coronavirus epidemic and vaccine progress. Anti-epidemic concept stocks rose, energy stocks fell, and Mogu Street (MOGU) fell nearly 15 %. The Kandi car industry fell 28%, and the Eggshell apartment (DNK) rose more than 9%.
The pan-European Stoxx 600 index fell 0.6% to close at 390.77 points, but it rose by more than 14% in November, the largest monthly increase on record.
US WTI futures prices fell 0.4% to close at $45.34 per barrel. The international Brent oil price fell 0.8% to close at $47.88 per barrel, but both rose 27% in the entire November trading.
The price of gold futures fell 0.4% to close at $1,780.90 per ounce, due to the renewed news of the new coronavirus vaccine on the market. Biopharmaceutical company Modern said earlier on Monday that the vaccine developed by the company showed a 94.1% efficacy in final trials.
The monthly rate of the contracted sales index of existing homes in the United States in October was – 1.10%, compared with economists’ previous forecast of 1%, while the previous value was -2.20%. Compared with a year ago, pending home sales in the United States jumped 20.2% in October.
However, the month-on-month decline in sales contracts shows that the speed of existing home sales has slowed down after October sales of existing homes accelerated to the highest level since November 2005. Currently, the US housing market is being driven by record low mortgage interest rates.
The new coronavirus pandemic has caused at least 21% of the workforce to have to work from home, and as Americans look for more spacious residences for home offices and schools, people have moved from the city center to the suburbs and other low-density areas.
Under the influence of the new coronavirus pandemic, the economic recession that began in February has had a disproportionate impact on low-income people. At least 20 million people are receiving unemployment benefits.
At the same time, according to data provided by Freddie Mac, a mortgage financing agency, the 30-year fixed mortgage interest rate averages around 2.72%. The supply of housing failed to keep up with demand, which pushed up housing prices and discouraged many first-time homebuyers, despite builders stepping up construction efforts.
The government’s report this month showed that single-family residential buildings— the largest component of the US housing market— soared to the highest level since April 2007. Although the confidence of home builders is at a historical high, builders complain about the shortage of land and materials .
The US November Dallas Fed Manufacturing Activity Index was 12, compared with economists’ previous expectations of 15.80, while the previous value was 19.80.
The Dallas Fed said that although several key indicators have fallen from their October readings, expectations for future business conditions remained positive in November.
In this month, the future company outlook index fell to 22.5 from 31.7 in October, while the future general business activity index fell to 25.8 from 28.4 in the previous month.
The Chicago Purchasing Managers Index (PMI) for November in the United States was 58.20, compared with an economist’s previous forecast of 59%, while the previous value was 61.10.
Before the release of US ISM manufacturing data on Tuesday, the Chicago PMI was the last regional manufacturing index. Manufacturing surveys in other regions showed mixed results in November. Most manufacturers have managed to resume full operations.
Manufacturers have implemented new procedures to protect employees and customers and have not been significantly affected by the new restrictions imposed by government after the record outbreak of the new coronavirus.
However, if the outbreak becomes more severe, they will remain vulnerable to the general slowdown in the US and global economy. For example, exports have not yet returned to their pre-crisis peaks.