The news from CoreLogic that house prices fell 1.1% across the combined capital cities in May attracted considerable attention last week. What seems to have attracted less attention was the subsequent comment that “values have fallen during May in four of the past five years.” The question then is whether the latest decline in house prices is the new trend following the recent tightening of lending criteria imposed on banks by the regulator or merely a “blip”.
Geopolitical concerns remain high with another terrorist attack in London over the weekend. This may see some risk averse trading early this week which will see gold, bond yields and the US dollar rally at the expense of equity markets.
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