Within the U.S., sentiment appears to be skewed toward a slower rise in rates.
According to FactSet, the probability of a 50-basis point increase by the Fed appears to be in the offing. This has been one of the tailwinds behind the quarter-to-date rise in domestic equities.
Inflation remains a critical focus by the Fed, even with recent economic reports exhibiting some moderation in inflation since the high observed in July.
Outside the U.S., monetary authorities appear committed to raising interest rates in their ongoing efforts to battle inflation.
Housing starts for October declined 4.2% month-over-month, more than the estimated decline of 0.6% and September’s decline of 1.3%.
Likewise, the final report on Building Permits for October of 1,512,000 was below the preliminary report of 1,526,000. Surprisingly, homebuilders have outperformed quarter-to-date rising 14.7%. Year-to-date homebuilders have declined 28.1%.