Indosurya Weekly Report
Third Week, September 2010
Your Investment Partner
Home sales in U.S may rose indicating the stability of U.S real estate
Home sales probably increased in August, a sign the U.S. real estate market is stabilizing
after the expiration of a tax credit caused demand to plunge. Purchases of new and previously
owned homes rose 7% to a combined 4,395 million annual pace. A separate report may show
orders for long-lasting goods excluding transportation equipment rebounded last month. Sales
of previously owned homes rose to a 4,1 million annual rate in August from a 3,83 million
pace, according to the median estimate before the National Association of Realtors’ report on
Sept. 23 in Washington. The 7,1% gain would follow the record 27% plunge in July. The
following day, the Commerce Department will release the new-home sales figures. The
median forecast calls for purchases to rise to a 295.000 pace, up 6,9% from a month earlier.
Existing-home sales account for more than 80% of the market and are counted when a deal is
closed. New-home sales are recorded when a contract is signed.
The Fed will retain policy on assets, low rate pledge
The Fed this week is likely to affirm its pledge to keep interest rates low for an “extended
period” and maintain the floor on its holdings of securities. The survey indicates that even with
the economy slowing for 2 quarters and unemployment persisting at 9,5% or higher for the
past year, Bernanke may need more time to decide if additional stimulus is needed to support
a rebound in growth.
Bank of Korea says that Japan can’t solve the strong of Yen by alone
Japan can’t stem appreciation of the Yen acting by itself because currency-market
intervention by a single country has limited effect