US stocks advance as consumer stocks rally amid data

US stocks rebounded as new-home sales climbed to a six-year high and health-care shares rallied with producers of consumer staples. The S&P 500 advanced 0.8% to 1,998.30. The Dow Jones Industrial Average climbed 154.19 points (0.9%) to 17,210.06.

Sales of new US homes surged in August to six-year high

New-home sales in the US surged in August to the highest level in more than six years, a sign that the housing recovery is making progress. Purchases of new houses jumped 18% to a 504,000 annualized pace in August, the strongest since May 2008, Commerce Department figures showed. The median forecast of economists surveyed by Bloomberg called for the pace to accelerate to 430,000.

Draghi says euro level reflects monetary-policy paths

The euro’s depreciation is in line with the divergence of monetary policies around the world, European Central Bank (ECB) President Mario Draghi said. “Our monetary policy will stayaccommodative through time for an extended period of time while other countries’ monetary policies may gradually acknowledge that recovery istaking place in their countries,” he said.

Russian outlook dims for World Bank as consumption wilts

Russian consumption, which accounts for about half the US$2trn economy, is falling victim to tensionsover Ukraine, stalling the country’s “main growth engine,” the World Bank said in a report. Consumption growth will probably slow to 0.5% in 2015 and 0.6% in 2016 from about 2% this year, under the World Bank’s baseline scenario, which sees a period of “near-stagnation.” GDP will expand 0.5% in 2014, compared with 1.3% last year, and gain 0.3% in 2015 and 0.4% in 2016, the lender said.

German business confidence drops for fifth month

German business confidence fell more than analysts forecast in September as economic and political risks in the euro-area increase. The Ifo institute’s business climate index dropped to 104.7 in September from 106.3 in August. Economists predicted a decline to 105.8, according to the median of estimates in a Bloomberg survey.

Italy consumer confidence rises as Premier Renzi promises change

Italian consumer confidence rose  slightly in September, beating economists’ estimates, amid optimism that Premier Matteo Renzi’s economic overhaul will take hold. The confidence index increased to 102 in September from 101.9 in August, the Italian statistics office Istat said. The median estimate surveyed by Bloomberg was for a reading of 101.

RBA discussing measures to cool ‘unbalanced’ housing market

Australia’s central bank (RBA) said investors are starting to distort the nation’s housing market and is discussing possible measures with other regulators to strengthen lending practices. Treasurer Joe Hockey has called on regulators to closely monitor the housing market and said any measures to stem home-loan growthshould be targeted and temporary.

Crude rises as US inventories drop to 8-month low

WTI crude rose after a government report showed US inventories dropped to an eight-month low. Brent for November settlement added $0.10 to US$96.95 a barrel on the ICE Futures Europe exchange.

Source: Bloomberg