Today's U.S. reports
Today's U.S. reports revealed upside surprises for both October existing home sales and the November Richmond Fed data that add to recent market upgrades in the U.S. growth outlook. Existing home sales rose 2.0% in October to a 5.60 M new cycle-high rate, and analysts expect mild weather to allow a solid 16% Q4 clip. The Richmond Fed index surged to 4.0 from -4.0 while the job gauges both increased, leaving a solid ISM-adjusted rise to 53.5 from 51.5 in October. The big Richmond gains reinforce the uptrend in producer sentiment that is accompanying the inventory reversal and recovery in mining and factory output, just as upgraded assumptions for public and private investment are lifting 2017 GDP growth prospects.