- Existing-home sales in the U.S. rose 1.4% in June compared to May
- The Leading Economic Index expanded by 0.7% in June
- The Eurozone's key interest rate is currently set at -0.5%
Top Three Market Headlines
U.S. Home Sales Rise Despite Surging Prices: Existing-home sales in the United States rose 1.4% in June compared to May, according to data released last week by the National Association of Realtors (NAR). This marked the first month[1]over-month increase since January. Compared to the prior year, sales were up 23%. The number of homes available for sale rose modestly over the month, helping support the uptick in the monthly sales rate, though inventories at month[1]end remained low at only 2.6 months of supply. The median existing-home sales price rose to $363,300 in June according to the NAR, a 23.4% increase from June of 2020.
Leading Economic Indicators Rebound: The Leading Economic Index (LEI) for the U.S. continued to rise in June, gaining 0.7% over May's level. The LEI, published monthly by The Conference Board, is intended to signal shifts in the business cycle based on readings of various economic and financial indicators. According to the latest report, the gain was broad based, with 8 of the 10 components within the index improving; the only laggards for the month were average weekly hours worked and new housing permits. While the growth rate of the index had stalled earlier in the year, recent monthly gains suggest the outlook for economic expansion remains solid.
European Central Bank Pledges to Maintain Low Rates: The European Central Bank (ECB) signaled last week that it would continue to support the Eurozone economy with low interest rates. In a statement, ECB authorities said they will not increase the Eurozone's key interest rate, which is currently set at -0.5%, until inflation moves closer to the bank's target of 2%. Many analysts believe the ECB will not increase its interest rates until 2024 or 2025, which would be 10 years after the bank first took the key interest rate below zero.