Business

Authored by Michael Snyder

On the heels of homebuilder optimism tumbling to 8-month lows in July, existing home sales slumped in June (down 1.8%, more than the 0.9% decline expected) to the second lowest SAAR this year. Existing home sales are now unchanged since September, but we note that average prices are up 6.5% YoY.

WTI crude remains stuck ominously below $46 despite a full court press jawboning, headline-pumping effort this morning. As oil leaders meet in St.Petersburg, Saudis promised to cut exports further, Nigeria suggested it would limit output (at dramatically higher-than-current production), Russia offered hope that Q3 had "big potential", and OPEC suiggested tighter compliance monitoring (as cheating has picked up in recent months).. but oil just won't budge.

"Apprehension" - that's how Citi describes trader sentiment as a new week begins, in which the bank points to various event risks over the coming five days. The one markets are focusing on over say, the FOMC on Wednesday, is the political noise coming from Washington. The investigation into Russia’s alleged meddling in the 2016 election is back in focus as President Trumps’ son-in-law testifies, along with Trump Jr and Paul Manafort later in the week. As such, risk sentiment seems apprehensive ahead of the inevitable headlines

• Kushner, Russian Ambassador Had Undisclosed Contact (WSJ)
• Democrats take aim at big companies in economic blueprint (Reuters)
• Trump open to signing Russia sanctions legislation (Reuters)
• Schumer Predicts Trump Firing Mueller Would Be GOP Tipping Point (BBG)
• Senate GOP Unsure of What Health-Care Measure They Will Vote On (WSJ)
• Japan PM Abe denies favors for friend amid falling support (Reuters)
• Britain’s Economy Is Almost Flatlining (BBG)
• Wall Street Outlasts Congress on Banker Pay, But Still Loses (WSJ)