Economic News - September 10, 2008

Oil markets shrug off big inventory drops

Oil markets shrugged off a small OPEC production cut and a massive drop
in US oil inventories Wednesday as the spot price for WTI crude fell by
another 68 cents. This is a bubble that even with government
intervention (by OPEC governments) is rapidly deflating. Still, with
total US commercial petroleum inventories down more than 15 million
barrels in a single week and drops in all categories of refined
products except propane/propylene, traders should expect a pause and
maybe even some increase in prices the next few days.

Weekly Mortgage Applications Survey - September 10, 2008

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• Market Composite Index: 496.2


• Change: Up 9.5%


• Purchase Index: 371.5


• Change: Up 6.4%

Mortgage rates down

Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM) rates fell
last week while mortgage applications rose after adjusting for the
holiday shortened week, according to the Weekly Mortgage Applications
Survey from the Mortgage Bankers Association. Refinance applications
rose more than 15% on an adjusted basis, while purchase applications
rose more than 6%.

More bad news for British economy

The bad news continued for the European economy with the release of the
Leading Index for the UK Wednesday. The British leading indicators fell
0.7% in July, while the coincident index rose 0.1% according to the
Conference Board.

Kudlow: Look Through the Windshield

The commodity drop signals the death of inflation expectations. And of
course, the oil plunge itself is a big tax cut for consumers. Not only
will real wages start rising again, but folks will be able to service
their mortgages. That’s good for banks...
I know that there’s no confidence in the stock market. But I do want to
keep hammering away that falling commodities is a very good thing for
consumers. You can make money on that in the stock market.

Capital Commerce: Some Good Economic News

Here are a couple of rays of sunshine, via Reuters. First, the suits seem to be getting a bit more chipper...
And the folks at Disney aren't seeing a global recessio...

Image via Wikipedia

Exports Prop Up Local Economies

Exports have become a key to greater local prosperity in the U.S. more than at any time in decades, fueled by the dollar's fall.

EU Sharply Cuts Economic Forecast

Lower forecasts for growth in Europe underscored concerns that the region could slip into recession this year.

Supply of Homes for Sale Declines

The number of homes listed for sale declined in many metropolitan markets last month.

Fed May Increase Lending to Banks, Brokers as `Mother of Year-Ends' Nears

The Federal Reserve may have to
increase the cash it provides to banks and brokers, already a
record, to help them balance their books at the end of the year.

Japan Machine Orders Fall for Second Month as Makers See Demand Weakening

Japanese machinery orders fell for a
second month in July, signaling manufacturers expect the global
slowdown to crimp demand into next year.

New Zealand Cuts Key Rate More Than Estimates to 7.5%; Currency Tumbles

New Zealand's central bank cut its
benchmark interest rate by a half point to 7.5 percent, more
than forecast by most economists, saying the economy is in a
recession and inflation will slow.

Australian Employment Rises Three Times Forecast Pace, Jobless Rate Falls

Australian employers hired almost
three times as many workers in August as economists forecast,
adding to evidence a mining boom is helping offset weaker
domestic demand.

French Payrolls Fall More Than Twice Initial Forecast in Second Quarter

France lost more than twice as many
jobs as initially reported in the second quarter as economic
growth contracted for the first time in more than five years.

Japan machine orders hit by export slump, recession

China's troubled stock market

Sep 11 - China stock investors are running for cover on signs of an economic slowdown after the Olympics.