🇺🇸U.S. housing starts see biggest increase in six months
U.S. housing starts rose 9.6% in August, the biggest increase in six months, recovering from a 6.8% drop in July and exceeding market expectations of 6.5% growth. Total residential properties under construction reached 1.356 million in August, compared to 1.238 million in July. Compared to August last year, new construction increased 3.9%. Building permits also rose 4.9% in August, after falling 3.3% in July, from 1.406 million to 1.475 million. However, permits remain 6.5% below the number for the same month last year. The data indicate that the sector continues to grow despite higher interest rates, which make credit more expensive and reduce fears of a recession. Today, the Federal Reserve's Open Market Committee, the FOMC, is expected to begin its interest rate cut cycle, and the market continues to bet on a 0.50 percentage point reduction in the current rate, between 5.25% and 5.50%. On the CME, the Chicago Stock Exchange, the chances of a 0.50 point cut are at 61.0%, and those of a smaller reduction, of 0.25 percentage points, at 39.0%. Yesterday, the chances of a 0.50% cut were at 64.0%, and those of a 0.25 point cut were at 36.0%. The FOMC's decision will be released at 3:00 pm, along with the Fed directors' projections for the economy. American stock markets are up on the futures market, with the Dow Jones Index rising 0.12%, the S&P 500, 0.16%, and the Nasdaq 100 futures, 0.28%. The yield on the 10-year US Treasury note rose 0.03 percentage point to 3.68% and the dollar index, the DXY, fell 0.10% to 100.79 points. In Brazil, the Bovespa Index fell 0.47% to 134,320 points, while the dollar futures fell 0.16% to R$ 5.48, and future interest rates rose slightly, around 0.01 percentage point, awaiting the decision of the Monetary Policy Committee, the Copom, after 6:30 p.m., which should raise the basic Selic rate from 10.50% today to 10.75% per year.
