Action Insight Mid-Day Report

Risk Appetite Recedes Temporarily as Housing Construction Plunged

After dominating for most of the day, risk appetite recedes a bit in early US session after disappointing housing data.

The improved builders sentiment released yesterday failed to realize into new residential construction.

Housing starts unexpectedly dropped to new low of 458k in Apr while building permits dropped to 494k, also a new low.

US stocks open nearly flat with bias to retreat mildly.

But after all, prior high in DOW at 8587 is still expected to be taken out in near term and hence, we'd expect weakness in dollar and yen to resume as dusts settle.