U.S. equity markets were underwater today and the common currency failed to notch sustainable gains on weaker-than-expected U.S. November pending home sales that failed to meet expectations.Data evidenced a 16.0% m/m contraction, a sharp reversal from the revised +3.9% print in October, and were up 19.3% y/y, down from a revised 28.7% y/y.
On a positive note, November factory orders came in stronger-than-expected, up 1.1% - an expansion from October’s +0.8% print.
Bond giant PIMCO reported interest rate markets have gotten ahead of themselves by pricing in rate hikes by the Fed this year.
PIMCO is currently forecasting the fed funds target rate will remain lodged at its 0% to 0.25% range until late 2010 or early 2011.
