McDonald’s Beats On Profit And Revenue, Reverses U.S. Same-Store Sales Declines
Image Source: CNBC’s Kate Rogers joins ‘Squawk Box’ to report on the company’s quarterly earnings results.Video Length: 00:01:50
US Home Prices Remain Near Record Highs… As Mortgage Rates Re-Surge
With mortgage rates re-accelerating, the housing market faces another (worsening) affordability crisis – all since The Fed cut rates – and just to add some more pain to that, S&P CoreLogic’s Case Shiller data for August (released today) shows home prices in the top 20 cities in America rising 0.35% MoM (hotter than the 0.20% expected). However, despite the beat, home prices rose just 5.2% YoY (down from 5.93% in July) and the fifth straight monthly slowdown in the YoY growth…Source: BloombergThat is the lowest YoY growth since September 2023… but we note that home prices remain near record highs…Source: BloombergThe pace of home price appreciation continues to track bank reserves at The Fed (lower on a lag)…Source: BloombergOf course, the funniest thing is that as price appreciation actually begins to slow (a good thing for affordability at the margin), The Fed has slashed interest-rates (which one would expect will juice home prices once again?).But despitye the initial drop in mortgage rates, they have soared recently back above 7.00%…Source: BloombergWill The Fed ignite another houosing bubble and re-heat CPI in an Arthur-Burns-esque 1970s redux?
Sensex Today Ends 364 Points Higher; Nifty Above 24,450
After opening the day lower, Indian benchmark indices turned positive as the session progressed and ended the day on a positive note.Benchmark equity indices, BSE Sensex and NSE Nifty 50, pared the early losses, to extend gains for the second consecutive session, settling in positive territory on Tuesday.At the closing bell, the BSE Sensex stood higher by 364 points (up 0.5%).Meanwhile, the NSE Nifty closed higher by 127 points (up 0.5%).SBI, ICICI Bank, and HDFC Life are among the top gainers today.Tata Motors, Maruti Suzuki, and IndusInd Bank on the other hand, were among the top losers today.The GIFT Nifty was trading at 24,452 up by 119 points at the time of writing.The BSE MidCap index and BSE SmallCap index ended 0.7% higher.Sectoral indices were trading mixed today with stocks in the power sector and realty sector witnessing buying. Meanwhile, stocks in the auto sector and IT sector witnessing selling pressure.Gillette India, Indigo Paints, and Piramal Pharma hit their respective 52-week highs today.The rupee is trading at 84.09 against the US$.Gold prices for the latest contract on MCX are trading 0.3% higher at Rs 78,787 per 10 grams.Meanwhile, silver prices were trading 0.9% higher at Rs 98,264 per 1 kg. Why Maruti Suzuki Share Price is FallingIn news from the auto sector, Maruti Suzuki India reported an 18% decline in net profit for the September 2024 quarter falling to Rs 31 bn.The company’s July-September revenue from operations rose marginally by 0.3% year-on-year to Rs 374.5 bn, exceeding the poll estimate of Rs 371.3 bn.India’s largest carmaker’s latest quarterly net profit was hit by a deferred […]
Indian Silver Demand Drives Record Prices
Image Source: Indian silver demand has spiked, driving the price to record levels in rupee terms.There is a perception that silver has lagged gold despite a price increase of around 35 percent on the year in dollar terms. The fact that silver remains well below its record high, even as gold has in recent months, drives this feeling.But if you look at the trajectory of silver from an Indian perspective, it doesn’t seem like such a laggard. On Oct. 23, silver briefly eclipsed the ₹100,000 per ounce level before settling around a record high of around ₹97,000.Notably, this rally occurred after by more than half, lowering duties from 15 percent to 6 percent. , the market responded favorably to both the import duty cut and its timing right before the festive wedding season.Silverware sales seemed to benefit the most. “Our discussions with the trade suggested that silverware demand was subdued beforehand, given that these articles are mainly used for gifting and so high prices acted as a deterrent. However, the price correction, post-duty-cut, saw this area of Indian silver demand return quite significantly.” Improving rural consumption also boosted Indian silver demand. According to Metals Focus, rebounding silver sales in the countryside reflect a general improvement in the rural Indian economy. “For instance, two-wheeler sales grew by 13 percent y/y in Q3. More importantly, cumulative sales from April to September surpassed 10m units for the first time since 2019, indicating a return to normalcy.” A good monsoon season is expected to boost crop yields this year, pumping […]
GBP/USD Analysis: Selling Pressure Likely To Continue
The GBP/USD exchange rate is likely to remain under pressure in the coming days, with any bouts of strength likely to be short-lived. As we previously expected for GBP/USD, the downside was favoured as the exchange rate was capped by the 9-day moving average. Fast forward to this week and the same holds true: the exchange rate remains under pressure from the 9-day moving average, with the downside favoured for the next five days, with a target at 1.2909 support. (Click on image to enlarge) Technical forecasts for the GBP/USD pair today:The USD momentum certainly stalled during the latter half of the previous week, leading some to believe that the downtrend is starting to subside. GBP/USD has tried to recover amid USD weakness. However, the rally failed to break above the 9-day moving average at 1.2995, indicating a clear lack of appetite to bet against the USD in the face of impending event risks.Overall, risk management fundamentals suggest that standing in the way of GBP/USD weakness is unwise at this stage, and those looking to buy the dollar should be able to shed some of their exposure ahead of the US vote next Tuesday. Ahead of the November 5 election, we have the US Non-Farm Payrolls figures due out next Friday.As is clear, the US dollar’s attack in October was supported by a slew of economic data releases that beat consensus and talked about a strong economy where there is no urgent need for further interest rate cuts from the Federal […]