News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/PiLYJDVvtY
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
  • The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices. Get your market update from @PeterHanksFX here: https://t.co/0gULgIN2kw https://t.co/dzuxyjkXmx
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/yTYG7ote3R
  • The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy’s recovery. Get your market update from @FxWestwater here: https://t.co/CYUiH0PCca https://t.co/my6clW7pxY
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/q8Ds7wYrKA
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
US Household Net Worth Rises to $109 Trillion Over Third Quarter

US Household Net Worth Rises to $109 Trillion Over Third Quarter

Rich Dvorak, Analyst

Talking Points:

  • Financial Assets grew 2.2 percent led by record high equity prices
  • Household leverage increased modestly from expanding consumer credit
  • US stock selloff subsides following the release

American households feel a little wealthier at the end of the third quarter as net worth increases over $2 Trillion from a net worth of $107 Trillion midyear. Total assets increased 1.8 percent to nearly $125 Trillion during the months of July through September led by a 2.2 percent gain in financial assets. Total liabilities increased also albeit a slower pace of 1.1 percent primarily due to expanding consumer credit.

SPX Price Chart (Daily Bars) Third Quarter 2018:

Price Chart of the S&P500 Third Quarter Performance Daily Bars

With the S&P500 notching its all-time high of 2,940.91 the US stock market enjoyed gains exceeding 7 percent. The rise in equities was attributable record corporate profits, consistently strong data coming out of the US economy and strong demand from foreign investors.

Wage growth also had a major impact on the rise in net worth for US households as average hourly earnings rose most recently at a 3.1 percent year-over-year. Tax cuts have likely continued to make a positive impact on household worth as savings trickle down to American pocketbooks. Notable was the annualized rate of change in value of owner’s real estate equity which slowed to 5.6 percent compared to 8.2 percent, 11.4 percent and 10.4 percent over the preceding quarters. This adds to the mounting evidence of concerns over a deteriorating housing market.

The healthy increase in household net worth should support consumer spending headed into the holiday shopping season. However, the backdrop of a robust US economy is beginning to fade. Business owner sentiment is plateauing as forecasts for future economic growth are lowered due to concerns over global trade conflict and international risks such as Brexit. As of December 6, the S&P500 has slid over 8 percent since the beginning of October which will certainly impede additional gains in household net worth if the US stock market cannot recover. Further increases in household leverage and inflationary pressures if materialized could act as a headwind to net worth in the final quarter of 2018.

After the report was released, the S&P500 saw some relief from the big selloff in early trading.

Price Chart of the S&P500 on 6 December 2018

To see future data releases on key variables driving markets, check out the DailyFX economic calendar.

--Written by Rich Dvorak, Junior Analyst for DailyFX.com

--Follow on Twitter @RichDvorakFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES