December 20, 2022
US Housing Starts Fall for a Third Month, Building Permits Drop
New US home construction continued to decline in November and permits plunged as high borrowing costs paired with widespread inflation eroded housing affordability and demand.
Residential starts decreased 0.5% last month to a 1.43 million annualized rate, according to government data released Tuesday. Single-family homebuilding dropped to an annualized 828,000 rate, the lowest since May 2020.
Europe’s Gas Price Cap Threatens to Intensify Energy Crisis
Europe’s move to cap natural gas prices threatens to curb supply to the region and intensify its energy crisis.
European nations this week reached a deal to put a ceiling on gas prices, ending months of political wrangling over whether to intervene in its energy sector. But while the mechanism may help prevent extreme price swings, it may leave the region vulnerable to insufficient supplies and stronger competition from Asia.
Global Markets Jolted as BOJ Surprises With Yield Policy Change
The Bank of Japan’s unexpected hawkish shift sent shock waves through global markets as the developed world’s last holdout for rock-bottom interest rates inches toward policy normalization.
Japanese government bonds and Treasuries both slumped, while the yen surged after the BOJ raised its cap on benchmark 10-year yields to around 0.5% from 0.25%, surprising every economist surveyed by Bloomberg. The fallout touched everything from US stock-index futures to the Australian dollar and gold.
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