Tuesday, June 26, 2012

Look Ahead: Durable Goods, Pending Home Sales

by Calculated Risk on 6/26/2012 09:25:00 PM

The two day European summit starts on Thursday, and there will be more pre-meeting position statements tomorrow. Here was some "positioning" today:

From Reuters: Merkel buries euro bonds as summit tension rises

Two days before a crucial European Union summit, European Council President Herman Van Rompuy released a seven-page report on closer fiscal and banking union envisaging a euro zone treasury that would issue common debt in the medium term.

Merkel immediately stamped on the idea of mutualising debt - favored by France, Italy and Spain - at a meeting of lawmakers from her Free Democratic coalition partners in Berlin, according to people who attended the closed-door session.

"I don't see total debt liability as long as I live," she was quoted as saying, a day after branding the idea of euro bonds "economically wrong and counterproductive".
From the Financial Times: Monti lashes out at Germany ahead of summit
Mario Monti has set the stage for a tough fight with Germany at the EU summit this week, insisting that he will continue to push Italy’s proposal to use eurozone bailout funds in an attempt to stabilise financial markets.
Excerpt with permission
I don't expect much from this summit except an extension for Greece. I'm keeping an eye on Europe, but not watching too closely!

On Wednesday:
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the mortgage purchase applications index.

• At 8:30 AM, Durable Goods Orders for May will be released by the Census Bureau. The consensus is for a 0.4% increase in durable goods orders.

• Also at 10:00 AM, the NAR will released the Pending Home Sales Index for May. The consensus is for a 1.2% increase in the index.

Earlier on house prices:
Case Shiller: House Prices increased in April
Real House Prices and Price-to-Rent Ratio
House Prices to increase 10%?
All Current House Price Graphs