US: Chicago PMI and home price index in focus - Nomura

Analysts at Nomura suggest that in the forthcoming US session, Case-Shiller home price index and Chicago PMI will be the key economic releases.

Key Quotes

“Home prices have been rising steadily as buyers compete for a limited supply of homes for sale, worsening home affordability. While the Case-Shiller 20-city composite index rose 5.81% y-o-y in July, the number of listings for sale has not risen materially and remains low by historical standards. With steady demand from consumers, pressure on home prices likely persisted in August. We expect the August Case-Shiller 20-city composite index to have risen steadily.”

“Chicago PMI: We expect an elevated reading of 63.0 for the October reading of the Chicago PMI, following a high reading of 65.2. Manufacturing sector activity has been expanding at a solid pace, reflecting healthy domestic and foreign demand. We think that momentum likely carried through October considering elevated readings in the October Philadelphia Fed and New York Fed manufacturing surveys.”