Stock markets had a good run on Wednesday, underscoring confidence in the global economic situation. Real estate counters are pushing the S&P 500 higher as good news on pending home sales boost sentiments in the sector.
It comes as good news arrived in Europe where former UBS leader Sergio is set to return as CEO to help with the complexity of integrating the Credit Sussie acquisition.
Nasdaq continued its streak of outperformance
The index received much support after Micron Technology boost its outlook. This helps to pull up the semiconductor sectors with Intel benefiting from the risk-on mood. Alibaba positive news on the business split showered further progress to the index.
Investors are now predicting again a Fed pivot as the economy is likely to be hit by the banking turmoil in a more restrictive monetary environment. There are also expectations that consumer spending may cool further with corporate spending likely to remain in moderation.
Rosy Pending Home Sales – A sign that the bottom is near?
We had a good piece of data from the housing end. Pending home sales continued to grow for the third consecutive month, perhaps a hint that the housing market is perhaps out of the woods?
The gain is a definite surprise for economists had predicted a drop. We are also seeing signs that home price growth is starting to mellow and this has a positive impact on home purchasing power.
What’s on the menu today?
At 8,30 pm, we will have the GDP data. We should expect growth to remain at 2.7%. Initial Jobless claims should climb slightly from 191K to 196K. These two pieces of data will hint at whether we can have a soft landing with a less aggressive Fed for the market to continue its uptrend recovery mode.
It is 30 March, Thursday, 8.40 am in Singapore and 8.40 pm in New York, We wish all friends a splendid and sunny morning!
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All is well.