Florence, now a tropical storm, has made landfall in North Carolina and authorities have warned of “ catastrophic” flooding. The aftermath of the storm will continue to garner attention next week, as will geopolitics and a major shake-up to a key classification system used by index providers.
Here’s what to watch in the coming days.
South Korea president Moon Jae-in will meet with North Korean leader Kim Jong Un in Pyongyang on Tuesday. South Korea has been calling on the US and North Korea to make “bold decisions” towards scrapping the latter’s nuclear programme, and Mr Moon has acted as a bridge between North Korea and the US.
UN General Assembly
The United Nation’s General Assembly gets under way in New York on Tuesday, with high-level General Debate scheduled for the following week. President Donald Trump used his debut address last year to warn Pyongyang that the US would “totally destroy” North Korea if forced to defend itself or its allies. Since then, Mr Trump and Kim Jong Un have held a historic summit to denuclearise North Korea. Mr Trump is expected to discuss global drug problems, but he could also comment on Iran and North Korea.
The economic calendar next week brings a smattering of housing data at a time when tight inventory, high prices and rising mortgage rates are curbing purchases despite strong demand.
The National Association of Homebuilders’ housing market index is projected to slip to 66 in September from 67 the previous month, when data are released on Tuesday. Meanwhile, housing starts are estimates to have climbed 4.7 per cent month-on-month in August to an annualised pace of 1.23m units, while building permits are projected to have climbed a more modest 0.3 per cent.
Existing home sales, which fell for the fourth consecutive month in July to their slowest pace in more than two years, are projected to have increased 0.2 per cent month-on-month in August to an annualised pace of 5.35m units.
After the close of trade on September 21, S&P will complete the biggest shake-up of a key classification system since its inception in 1999. The telecoms sector will cease to exist, and a communication services sector will comprise the three existing S&P 500 telecom companies — AT&T, Verizon and CenturyLink — along with consumer discretionary names like Comcast, 21st Century Fox, Netflix, and Walt Disney, and tech giants including Alphabet, Facebook, Twitter.
Thanks to the growth in exchange traded funds and exchange traded products, the changes are expected to have an impact on the market.