New home sales in the US absolutely smashed forecasts yesterday, coming in way above expectations. Economists had predicted that sales would fall 6% to 625,000 in October, but they actually jumped by 6.2% to 685,000. This was the highest figure for ten years and is further evidencing the US economic recovery.
There is speculation that next month’s interest rate hike by the Fed may be the last for a while as inflation is not increasing at the hoped for rate, which is of some concern to investors. Obviously nothing is certain at the moment, but last week’s meeting minutes did show some reluctance to push borrowing costs too high.
There are no major releases in the US today, although several Fed members are due to give speeches. We will see the goods trade balance figures for October, but tomorrow is the day we see the GDP figures so attention will likely be turned to that.