Yesterday, House Speaker Nancy Pelosi announced she would launch a formal impeachment inquiry against Trump after Trump allegedly pressured the Ukrainian President to investigate the former Vice President’s family. Details of the call are still unknown to the public however, Trump admitted he brought up Biden on the call and stated he would release a transcript of it. In anticipation of this impeachment inquiry, the S&P 500 and Nasdaq Composite posted their biggest one-day declines in a month and the Dow Jones dropped 142 points. This morning stock futures have seemed to recover from yesterday’s unexpected fall. The Dow Jones futures suggested a gain of more than 20 points at the open. S&P 500 futures also pointed to a small gain while the Nasdaq futures indicated a flat open. Stocks declined in Europe and Asia as investors weighed the impeachment allegations against the possibility of reduced trade tensions; the Stoxx Europe 600 Index headed for its largest drop in six weeks.The yield on 10-YearTreasuries increased one basis point to 1.65% while the yield on 2-YearTreasuries dropped one basis point to 1.62%. The US Treasury will offer $41 billion at its 5-Year notesauction, the same amount as the last offering, as well as $18 billion in 2-Year floating rate notes. West Texas Intermediate crude oil sank 1.70% to $56.30 a barrel. Gold decreased 0.30% to $1,527.11 an ounce.
Single family homes sales fell 12.80% to a 635,000 annualized pace, while the June sales reported 728,000. The median sales price also decreased 4.50%, from the previous year, to $312,000. Applications to refinance a home loan fell 15% for the week, but were still reported 104% higher than a year ago. Mortgage applications to purchase a home fell 3% for the week, however were 9% higher than a year ago. Purchases of new homes decreased in the Midwest, South, and West, while rising 50% to 39,000 in the Northeast. A report released by the United Nations found that surface temperatures and sea levels for the world’s oceans are rising at an accelerated rate. Melting ice sheets in Greenland and the Antarctic have increased the frequency of disastrous sea level events, such as flooding and tropical cyclones. The Intergovernmental Panel on Climate Change has reported that marine heatwaves have doubled in frequency every year since 1993. The warming oceans has caused a drop in fish populations, in conjunction with the impact of over-fishing, there has been a significant reduction in fishery catch potential.
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Yesterday, House Speaker Nancy Pelosi announced she would launch a formal impeachment inquiry against Trump after Trump allegedly pressured the Ukrainian President to investigate the former Vice President’s family. Details of the call are still unknown to the public however, Trump admitted he brought up Biden on the call and stated he would release a transcript of it. In anticipation of this impeachment inquiry, the S&P 500 and Nasdaq Composite posted their biggest one-day declines in a month and the Dow Jones dropped 142 points. This morning stock futures have seemed to recover from yesterday’s unexpected fall. The Dow Jones futures suggested a gain of more than 20 points at the open. S&P 500 futures also pointed to a small gain while the Nasdaq futures indicated a flat open. Stocks declined in Europe and Asia as investors weighed the impeachment allegations against the possibility of reduced trade tensions; the Stoxx Europe 600 Index headed for its largest drop in six weeks.The yield on 10-Year Treasuries increased one basis point to 1.65% while the yield on 2-Year Treasuries dropped one basis point to 1.62%. The US Treasury will offer $41 billion at its 5-Year notes auction, the same amount as the last offering, as well as $18 billion in 2-Year floating rate notes. West Texas Intermediate crude oil sank 1.70% to $56.30 a barrel. Gold decreased 0.30% to $1,527.11 an ounce.
Single family homes sales fell 12.80% to a 635,000 annualized pace, while the June sales reported 728,000. The median sales price also decreased 4.50%, from the previous year, to $312,000. Applications to refinance a home loan fell 15% for the week, but were still reported 104% higher than a year ago. Mortgage applications to purchase a home fell 3% for the week, however were 9% higher than a year ago. Purchases of new homes decreased in the Midwest, South, and West, while rising 50% to 39,000 in the Northeast. A report released by the United Nations found that surface temperatures and sea levels for the world’s oceans are rising at an accelerated rate. Melting ice sheets in Greenland and the Antarctic have increased the frequency of disastrous sea level events, such as flooding and tropical cyclones. The Intergovernmental Panel on Climate Change has reported that marine heatwaves have doubled in frequency every year since 1993. The warming oceans has caused a drop in fish populations, in conjunction with the impact of over-fishing, there has been a significant reduction in fishery catch potential.
The curve has bear-steepened with UST 10-Year yield up 1.37 bps.