US new home sales tank; Texas factories humming; Wall Street positive; S&P sees Canada fraud risk; UK consumer borrowing drops; UST 10yr at 2.86%; oil and gold firmer; NZ$1 = 73 USc; TWI-5 = 74.2; bitcoin at US$10,180

US new home sales tank; Texas factories humming; Wall Street positive; S&P sees Canada fraud risk; UK consumer borrowing drops; UST 10yr at 2.86%; oil and gold firmer; NZ$1 = 73 USc; TWI-5 = 74.2; bitcoin at US$10,180

Here's our summary of key events overnight that affect New Zealand, with news bitcoin is back over US$10,000.

Firstly, sales of new homes in the US in January have come in dramatically lower than expected and well down on the rate we saw in December. It was even below the level for the same month a year ago. Further, median prices for these new homes dropped -4% and more worryingly, the number of months supply at current sales rates rose to 6.8 months. Driving the change were steep declines in the Northeast and South, and these raise concerns the American housing market is losing momentum.

But a closely watched report of business activity in the American oil patch has come in very positive. The new orders and growth rate of orders in Texas held steady however. But capacity utilisation rose and shipments rose sharply and reached their highest level in twelve years.

Investors on Wall Street have started the week in a positive mood with most indexes up about +1%.

In Canada, ratings agency S&P says that fast rising prices, high personal debt and frothy housing conditions are a breeding ground for mortgage fraud and it expects more in their big cities especially, and by second tier banks especially. The ratings agency has dropped its economic risk assessment by one notch as a consequence.

In the UK, the growth in consumer lending after the GFC is over. It took a sharp drop after the Brexit vote, and now it has turned negative. Consumer pessimism - or just consumers preparing for a tighter future - has the potential to become self-fulfilling.

In New York, the UST 10 yr yield starts today at 2.86% and another slight drift lower.

The gold price is up marginally by +US$3 to US$1,331/oz as it continues its oscillation around that level.

Oil prices are a little firmer today with the US benchmark now just over US$64/bbl and the Brent benchmark over US$67.50/bbl.

The Kiwi dollar will also start marginally firmer this morning at 73 USc. On the cross rates we are a tad higher at 93.1 AUc and at 59.4 euro cents. That puts the TWI-5 at 74.2.

Bitcoin is back over US$10,000 and now at US$10,180. That is a +9% rise from this time yesterday.

This chart is animated here. For previous users, the animation process has been updated and works better now.

The easiest place to stay up with event risk today is by following our Economic Calendar here ».

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Source: CoinDesk

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10 Comments

Bitcoin's volatility is the primary reason it can never be treated as a serious asset class .

It is , for this reason, certainly useless as a means of exchange .

Try thinking of it as digital gold Boatman...without the manipulation of the vested interests.

All of the cryptos are heavily manipulated as the market orders and so thin. There's a big wave of pump and dump going on right now. People are actively buying entry to pump and dump groups to profit from the suckers entering the market.

Essentially the crypto market is just as bad as the gold and silver manipulation.

Disagree...can you provide proof of this? link?

You can disagree all you want but your opinion doesn't change what's been happening since the early days of bitcoin exchanges. What you should do is some actual research, or at very least use google.co.nz.

If you are unaware of the manipulation you are just a mark.

Yes will continue to disagree and make my investments with research ...so far profits of $5k for 6 months research. You keep up yours as well and we can check back this time next year.

You should invest for the long term. Check back in 10 years.

Keep your advice mate

If people are going to get into cryptos they should play the game at the following link. There's in-jokes that people won't get but it's a very realistic crypto trading simulator.

https://www.lexaloffle.com/bbs/?pid=49643#49642

... and from the " you won't believe it but it's true " file ... going viral on the internet is a photo of a Cadbury Crème Easter egg next to a small pile of sugar ... 21 grams of it ... the exact amount the egg contains ...

Now ... I know that's a lot ... 5 teaspoons of sucrose in just one Cadbury Crème egg ... that is a lot ... but why the shock and awe from the internet ...

... did we think they were low-fat , organic & free range or something ? ..... ha haaaa deeeee haaaaaa .....