Treasuries flattened slightly overnight in response to fears that Italian populists were getting close to coming to an agreement to write off €250bn of national debt. Risk assets sold off, with equities and commodities both down in European trading. The news that North Korea was considering pulling out of negotiations added to the risk-off tone.

On the data front, housing starts in the month of April fell to 1.29 million from 1.32 million in March, as new construction on apartment buildings fell 11.3%. The month over month change in industrial production came in higher than expected at 0.7% vs 0.6% and was a 0.2% increase from the prior month.

Hafizan Hamzah
Director, Investment Management Group

05/15Empire Manufacturing1520.115.8
05/15Retail Sales Advance MoM0.30%0.30%0.60%0.80%
05/15Retail Sales Ex Auto MoM0.50%0.30%0.20%0.40%
05/15Retail Sales Ex Auto and Gas0.40%0.30%0.30%0.40%
05/15Retail Sales Control Group0.40%0.40%0.40%0.50%
05/15Business Inventories0.10%0.00%0.60%
05/15NAHB Housing Market Index69706968
05/15Total Net TIC Flows-$38.5b$44.7b$47.5b
05/15Net Long-term TIC Flows$61.8b$49.0b
05/16MBA Mortgage Applications-2.70%-0.40%
05/16Revisions: Housing Starts    
05/16Housing Starts1310k1287k1319k1336k
05/16Housing Starts MoM-0.70%-3.70%1.90%3.60%
05/16Building Permits1350k1352k1354k1377k
05/16Building Permits MoM-2.10%-1.80%2.50%4.10%
05/16Industrial Production MoM0.60%0.70%0.50%0.70%
05/16Manufacturing (SIC) Production0.50%0.50%0.10%0.00%
05/16Capacity Utilization78.40%78.00%78.00%77.60%
05/16Mortgage Delinquencies5.17%
05/16MBA Mortgage Foreclosures1.19%
05/17Initial Jobless Claims215k211k
05/17Continuing Claims1780k1790k
05/17Philadelphia Fed Business Outlook2123.2
05/17Bloomberg Economic Expectations52.5
05/17Bloomberg Consumer Comfort55.8
05/17Leading Index0.40%0.30%