Amana FS Market News
The United States’ consumer comfort index increased to 53.8 for the week ending 14 January, versus the 53.5 reading seen the week prior. Despite the weaker readings seen in recent weeks, the series continues to hold relatively steady compared to other sentiment measures.
USD/CNY is trading at a 2-year low around 6.4180 and seen eyeing a test of key psychological support at 6.4000, last breached in early December 2015. Demand for CNY has been aided following the Bundesbank reaffirming on Monday that it would include the CNY in its currency reserves.
The January Philadelphia Fed index revealed a decrease in the headline measure to +22.2, versus the revised +27.9 reading seen in December (prev. 26.2), below expectations for a +25.0 result. Alongside the decrease seen in the headline, readings among key subcomponents saw generally mixed performance, highlighted by downward pressure seen in new orders (+10.1, from +28.2) and the number of employees (+16.8, from +19.7), contrasted by increases in shipments (+30.3, from +23.9) and the average workweek (+16.7, from +12.6). In terms of pricing, less inflationary pressure was seen in prices paid (+32.9, from +27.8). Meanwhile, expectations for improvement moving forward were weaker for business conditions over the next six-months, pushing lower to +42.2, from +52.7.
The December US Commerce Department housing starts and building permits report saw a decrease in housing starts to 1192k (-8.2% m/m), versus the revised 1299k reading seen in November (prev. 1297k), well below market expectations for a 1275k result. Meanwhile, building permits edged lower to 1302k in December (-0.1% m/m), versus the revised 1303k reading that occurred in October (prev. 1298k), just above market expectations for a 1295k result. Despite the decrease seen for starts, we expect broader improvement is likely to be seen in the months ahead as production gradually improves, despite any lingering headwinds.
US Initial jobless claims for the week ending 13 January decreased -41k to 220k (lowest level since 24 February 1973), versus the unrevised 261k reading seen in the week prior, well below expectations for a 250k result. The 4-week average was reported at 244.5k, down from the 250.8k reading seen in the week prior. Meanwhile, continuing claims for week ending 6 January increased to 1.952mln, versus the 1.876mln reading seen prior.