TOP STORIES:
Borrowers
Tap Their Homes at a Hot Clip - (online.wsj.com)
A rebound in house prices and
near-record-low interest rates are prompting homeowners to borrow against their
properties, marking the return of a practice that was all the rage before the
financial crisis. Home-equity lines of credit, or Helocs, and home-equity loans
jumped 8% in the first quarter from a year earlier, industry newsletter Inside
Mortgage Finance said Thursday. The $13 billion extended was the most for the
start of a year since 2009. Inside Mortgage Finance noted the bulk of the home-equity
originations were Helocs. While that is still far below the peak of $113
billion during the third quarter of 2006, this year's gains are the latest
evidence that the tight credit conditions that have defined mortgage lending in
recent years are starting to loosen. Some lenders are even reviving old loan
products that haven't been seen in years in an attempt to gain market share.
Le
Pen as President? France thinks the unthinkable - (www.reuters.com) The victory of France's far-right National Front in EU
elections and the disarray of its two main parties has the French asking
themselves an awkward question: could its leader Marine Le Pen be their next
president? The answer for now is: "Probably not". But the mere fact
that serious analysts are even entertaining the prospect of Le Pen entering the
Elysee Palace after 2017 elections shows how much the political landscape has
been shaken in the past week. The anti-immigrant, Eurosceptic party notched up
the first nationwide poll victory in its four-decade history on Sunday in a
European Parliament election marked by voter disenchantment with Europe and the
entire French political establishment.
Iron
Ore Heads for Record Losing Streak on Growing Supply - (www.bloomberg.com) Iron ore capped a sixth monthly drop
in the longest losing run on record as rising supplies from Australia and Brazil spur
a global glut. Fortescue Metals Group Ltd.
(FMG) said there could be further losses, with a risk prices
may retreat to the lowest level since 2009. Ore with 62 percent content
delivered to Tianjin tumbled 4.1 percent to $91.80 a dry ton, the lowest level
in 20 months, according to data from The Steel Index Ltd. today. The
steel-making raw material sank 12.9 percent in May, and has dropped every month since December in the
longest run of monthly losses since the data series began in November 2008. Iron
ore entered a bear market in March as the biggest
miners including BHP Billiton Ltd. (BHP) and Rio Tinto Group (RIO) raised output,
spurring forecasts for a rising global surplus.
Vale
Set for Worst Losing Streak Since 2008 - (www.bloomberg.com) Vale SA (VALE5), the world’s largest iron-ore producer,
posted its worst streak of monthly losses in five years as prices for the
steel-making ingredient sink. The shares fell 3.8 percent to 25.64 reais at the
close of trading in Sao Paulo today, bringing losses this
month to 3 percent. The stock capped its seventh monthly drop, the longest losing rout since
2008. Brazil’s benchmark Ibovespa gauge dropped 0.8 percent in May,
snapping two months of gains. Iron ore sank 4.1 percent today to
$91.80 a dry ton and has lost 13 percent in May, a sixth monthly retreat.
That’s the longest losing run since the data series began in November 2008. The
commodity is down 32 percent this year, entering a bear
market in March as the biggest miners raised output, spurring
forecasts for a rising global surplus while slowing growth in China capped
demand.
Gold
Prices Post Biggest Weekly Decline in Eight Months - (www.bloomberg.com) Gold futures fell, capping the biggest weekly
drop since September, after a U.S. equity rally and signs of easing tensions in
Ukraine curbed demand for the precious metal as a haven. Silver dropped to an
11-month low. U.S. durable-goods orders unexpectedly rose in April, indicating
manufacturing is gaining, government data showed on May 27. Today, the Standard
& Poor’s 500 Index of stocks climbed to a record. Last year, gold tumbled
28 percent on concern that the Federal
Reserve would taper the pace of monetary stimulus as the
economy rebounded. Russia has pulled back most of its troops from the border
with Ukraine, according to a U.S. defense official. Gold dropped below $1,250
an ounce to a 16-week low and posted the fifth straight daily decline, the
longest slump since April 1.
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