August 23, 2023
United States:
US Home Purchase Applications Hit Lowest Since 1995 on Rate Rise
US mortgage applications for home purchases stumbled last week to an almost three-decade low, indicating residential real estate is reeling from the recent spike in borrowing costs.
The Mortgage Bankers Association index of home-purchase applications fell 5% to 142, the lowest level since 1995. The Wednesday data also showed that the contract rate on a 30-year fixed mortgage increased 15 basis points to 7.31% in the week ended Aug. 18 — the highest since late 2000.
Europe:
Euro Area’s Worsening Downturn Fuels Bets on ECB September Pause
The contraction of private-sector activity in the euro area intensified, leading investors to bet that the European Central Bank will pause its campaign of interest-rate hikes next month.
Services in August ceased being a bright spot and followed the industrial sector into a downturn in the region’s top two economies, prompting the shift in market wagers and sending bond yields and the euro tumbling.
Asia:
Global Funds Abandon China Blue Chips in $11 Billion Selloff
Global investors have been shedding China’s blue-chip stocks during the longest stretch of outflows on record, showing even the nation’s industry leaders are falling out of favor as a rout deepens.
Foreign investors sold 6.2 billion yuan ($851 million) of Kweichow Moutai Co. during Aug. 7-18, making China’s largest liquor maker the most heavily sold stock via trading links with Hong Kong. It was followed by 4.7 billion yuan of selling each for leading renewables stock LONGi Green Energy Technology Co. and major lender China Merchants Bank Co., according to the latest data on individual stocks available on Bloomberg.
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