After a bit of a rough start, the major equity indices managed to reverse into the green during the first half of today's session. There is not much in the way of economic data releases this week to move the market. As such, Geopolitical news along with Corporate America flooding the market with earnings releases throughout the week may contribute to volatility in the market.
We learned of some interesting news abroad. During the month of June, China saw housing prices fall 4.9% year-over-year. This is actually an improvement from the previous month where housing prices decreased by 5.7% or April where prices declined by 6.1%. According to reports, the country has seen strong growth in housing starts. Credit Suisse noted that new residential construction is 12% above demand, contributing to the lower prices. Also, 18% of the new houses remain vacant after completion. In order to raise prices, and decrease supply, the homebuilders may move to lower the labor force and decrease production. This would contribute to weaker manufacturing during the quarter.
