Tuesday 20 November 2018

US stocks plunge with homebuilder confidence

Markets mostly fell on Monday.

The S&P 500 plunged 1.7 percent while the STOXX Europe 600 fell 0.7 percent.

Earlier on Monday, the Nikkei 225 had risen 0.7 percent.

“Trade war concerns with China weigh on the global supply chain for large technology companies while global growth fears worry many that future earnings will be lower,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, in a research note.

“Today’s housing data was pretty bad,” said Jim Smigiel, chief investment officer of non-traditional strategies at SEI Investments, referring to a report that showed that the National Association of Home Builders’ monthly confidence index plunged eight points to 60 in November.

Jefferies economists are sanguine though, writing after the NAHB release that housing “appears to be settling into a plateau”, with “no signs of threatening excesses such as inventory overhangs and a surge in delinquencies”.

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