20121120 0942 Global Economy Related News.

EU: Euro declines vs most peers after Moody’s cuts France rating
The euro slid vs most of its 16 major counterparts after Moody’s Investors Service lowered France’s government bond rating, renewing concern the currency bloc’s debt crisis is deepening. The euro weakened against the dollar and yen after Moody’s cut France by one grade to Aa1 and said its outlook remains negative, citing an uncertain fiscal outlook for Europe’s second-biggest economy. (Bloomberg)

EU: Europe chiefs face Greek aid gap in rescue brinkmanship with IMF
European finance ministers will try to plug a EUR15bn (USD19bn) hole in Greece’s finances and win over the International Monetary Fund in the latest instalment of three years of debt-crisis brinkmanship. Recycling European Central Bank profits on Greek bonds, charging Greece lower interest rates and extending repayment deadlines are among the options under consideration today for filling the new gap in Greece’s public accounts. (Bloomberg)

US: Sales of existing US homes increase unexpectedly
Sales of previously owned US homes unexpectedly climbed in October, showing record-low mortgage rates are helping spur the world’s largest economy. Purchases of existing houses increased 2.1% to a 4.79m annual rate, exceeding the median forecast of economists surveyed by Bloomberg, figures from the National Association of Realtors showed today in Washington. Property values rose over the past 12 months by the most in seven years as inventories dropped to the lowest level in almost a decade. (Bloomberg)

US: Homebuilder confidence rises to six-year high on US sales
Confidence among US homebuilders unexpectedly climbed in November to a six-year high, propelled by the biggest jump in sales in a decade, adding to signs the real-estate market is improving. The National Association of Home Builders/Wells Fargo index of builder confidence increased to 46, the highest level since May 2006, from 41 in October, figures from the Washington-based group showed. The median forecast in a Bloomberg survey of 49 economists called for no change. Readings below 50 mean more respondents said conditions were poor. (Bloomberg)

S&P 500 rises most in 2 months amid budget deal optimism
US stocks rose, giving the Standard & Poor’s 500 Index its biggest advance in two months, amid better-than-forecast housing data and as President Barack Obama expressed confidence on a budget agreement with Congress. The S&P 500 rose 2% to 1,386. The Dow Jones Industrial Average added 207.65pts, or 1.7%, to 12,795.96. Obama met with senior Democrats and Republicans on 16 Nov for talks to avoid USD607bn of automatic tax increases and spending cuts that. Sales of previously owned US homes climbed in October, indicating gains in the real estate market are being sustained by cheap borrowing costs. (Bloomberg)