Market Talk – Tuesday, April 27

The major European stock markets had a negative day:

  • CAC 40 decreased 1.76 points or -0.03% to 6,273.76
  • FTSE 100 decreased 18.15 points or -0.26% to 6,944.97
  • DAX 30 decreased 47.07 points or -0.31% to 15,249.27

The major European currency markets had a mixed day today:

  • EURUSD decreased 0.00024 or -0.02% to 1.20784
  • GBPUSD increased 0.00149 or 0.11% to 1.39101
  • USDCHF decreased 0.00115 or -0.13% to 0.91333

Some economic news from Europe today:

Italy:

Italian Business Confidence (Apr) increased from 101.9 to 105.4

Italian Consumer Confidence (Apr) increased from 100.9 to 102.3

Italian Trade Balance Non-EU (Mar) increased from 4.11B to 4.80B

UK:

CBI Distributive Trades Survey (Apr) increased from -45 to 20

US/AMERICAS:

The Biden administration is raising the minimum wage to $15 for all federal contract employees today via executive order. The new order begins January 30, 2022, with pay adjusted annually for inflation. The issue was not immediately bipartisan with seven Democrats opposing the measure with Republicans.

Forbes recently recounted the ongoing urban exodus in America amid low mortgage rates and a growing demand for remote work. Previously, urban dwellers were more susceptible to being priced out of the suburbs as city dwellers are selling their higher-priced real estate and moving to the suburbs. Danielle Hale, realtor.com chief economist, anticipates home sales rising 7% in 2021, and prices to increase 5.7% despite already reaching all-time highs. Hale said she does expect the buying surge to slow by the end of the year once new construction advances. Daryl Fairweather, chief economist of Redfin, said he expects home sales to increase 10% in 2021 from 5% in 2020. He also said he expects homeownership to rise above 69% by the end of the year. David Howard, National Rental Home Council executive director, said that affordability and supply will be the two main driving forces. Although all economists interviewed by Forbes stated that the real estate market is relying on Millennials to purchase homes, however, Howard was one of the only to acknowledge that demographic is being priced out of the market who are likely already paying a premium on rental housing. “Much of this move is being led by Millennials, who are transitioning squarely into prime household formation years. However, that generation is also the least wealthy at a time when the cost of homeownership continues to climb. We believe these demographic factors bode well in the coming years for the rental housing market, particularly single-family rental homes. Millennials’ demand for housing is not going to diminish, but it may just take a little longer to make homeownership a reality,” Howard said.

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