The record rally in equities continues to huff and puff higher with all three major indexes showing gains in the face of 1) Trump’s UN speech, 2) the beginning of the Federal Reserve open market committee meeting and 3) Mexico shutting down trading after getting hit with another earthquake. At the close the Dow posted a gain of 39 points on light volume to 22,370.
Housing starts in August fell 0.8% but this was expected given the severe weather events in Houston and Florida. This report shows the divergent paths between single family starts and multifamily starts. Over the past year multifamily starts are down 24.7% while single family starts are up 17.1% from a year ago and the gurus are expecting this trend to follow.
The US is becoming a significant exporter of energy or as some would say “bigly”. Starting last year the US shipped its first loads of LNG (liquefied natural gas) and crude oil to go along with coal which had already been exported via Canada. In a recent Euronews feature I learnt that a first time ever shipment of US coal from Pennsylvania had arrived in Ukraine which has been fighting Russian while at the same time being dependent on Russian for coal, gas and oil. 48% of US LNG is going to South and Central America (Chile, Mexico, Argentina, Brazil) followed by 28% to Asia (India, Japan, China) followed by Europe and parts of the Middle East. The presence of US energy exports has allowed some countries to move away from OPEC and Russian sources and appears to be changing the balance of power in global energy markets and money flows.