The tone in risk markets remained positive overnight, with some headlines suggesting progress in China/U.S. trade negotiations. Treasury prices are little changed at the moment, and credit spreads are slightly tighter. While a Wall Street Journal is reporting that the White House is considering a new trade complaint against China (technology related), equity investors are responding favorably to a separate announcement from Chinese officials that the country will ease foreign ownership limits for auto and aircraft manufacturers. Germany’s Zew Index (tracks business sentiment) missed versus expectations in April, falling to the lowest level since November 2012. The weakness is being attributed to global trade tensions given Germany’s heavy reliance on exports. Fed Vice Chair for Supervision Randal Quarles will testify before the House Financial Services Committee this morning, and market participants will be watching for any announcements related to bank regulation changes, particularly the Supplementary Leverage Ratio.

Jason Haley
Managing Director, Investment Management Group

Date Time Event Survey Actual Prior Revised
04/17/2018 Housing Starts 1267k 1319k 1236k 1295k
04/17/2018 Housing Starts MoM 2.50% 1.90% -7.00% -3.30%
04/17/2018 Building Permits 1321k 1354k 1298k 1321k
04/17/2018 Building Permits MoM 0.00% 2.50% -5.70% -4.10%
04/17/2018 Industrial Production MoM 0.30% 0.50% 1.10% 1.00%
04/17/2018 Manufacturing (SIC) Production 0.10% 0.10% 1.20% 1.50%
04/17/2018 Capacity Utilization 77.90% 78.00% 78.10% 77.70%
04/18/2018 MBA Mortgage Applications -1.90%
04/18/2018 U.S. Federal Reserve Releases Beige Book
04/19/2018 Initial Jobless Claims 230k 233k
04/19/2018 Continuing Claims 1845k 1871k
04/19/2018 Philadelphia Fed Business Outlook 21 22.3
04/19/2018 Bloomberg Economic Expectations 56
04/19/2018 Bloomberg Consumer Comfort 58
04/19/2018 Leading Index 0.30% 0.60%
04/23/2018 Chicago Fed Nat Activity Index 0.88
04/23/2018 Markit US Manufacturing PMI 55.6 55.6
04/23/2018 Markit US Services PMI 54 54
04/23/2018 Markit US Composite PMI 54.2
04/23/2018 Existing Home Sales 5.57m 5.54m
04/23/2018 Existing Home Sales MoM 0.50% 3.00%
04/24/2018 FHFA House Price Index MoM 0.40% 0.80%
04/24/2018 S&P CoreLogic CS 20-City NSA Index 205.1
04/24/2018 S&P CoreLogic CS 20-City MoM SA 0.70% 0.75%
04/24/2018 S&P CoreLogic CS 20-City YoY NSA 6.40%
04/24/2018 S&P CoreLogic CS US HPI NSA Index 196.31
04/24/2018 S&P CoreLogic CS US HPI YoY NSA 6.18%
04/24/2018 New Home Sales 628k 618k
04/24/2018 New Home Sales MoM 1.60% -0.60%
04/24/2018 Richmond Fed Manufact. Index 17 15
04/24/2018 Conf. Board Consumer Confidence 126 127.7
04/24/2018 Conf. Board Present Situation 159.9
04/24/2018 Conf. Board Expectations 106.2