Real Estate

Stock, Real Estate Crash Would Spark US Deflation: Economist

  • The US economy could soon be at risk of deflation, according to Wermuth Asset Management.
  • Wobbling commercial property values a correction of lofty stock valuations would drag prices lower. 
  • Inflation accelerated 3.3% on an annual basis in July, well-below the pace of inflation recorded last year.

Disinflation could soo turn to deflation in the US, partly due to the risk of crashing stocks and real estate prices, according to Wermuth Asset Management.

Already, commercial property values are under pressure, while a potentially overvalued stock market could face a swift correction if conditions sour. A plunge in the price of these assets would go a long way in sparking deflation, the firm argues. 

“To speculate about deflation again at this point looks premature at first glance,

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Real Estate

Real Estate Leads European Stock Gains; Oil Rises: Markets Wrap

(Bloomberg) — European real estate shares headed for their biggest three-day advance since March, while oil climbed as traders weighed supply cuts.

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Global stock market trading was light on Tuesday, with US exchanges closed for the Independence Day holiday. Europe’s Stoxx 600 edged higher on trading volume that was a third lower than the 30-day average. US futures were little changed, while Canada’s benchmark equity gauge rose.

Real estate topped gains among European industry groups as Swedish property manager Castellum AB jumped as DNB Bank ASA recommended buying the stock because of its attractive valuation. Belgium’s Warehouses de Pauw CVA rose after boosting its earnings outlook.

Deal activity also sparked investor interest on Tuesday. Vienna-based OMV AG surged after Bloomberg News reported the firm and Abu Dhabi are in talks to create a chemicals and plastics company worth more than $30 billion.

Meanwhile, Casino Guichard-Perrachon SA

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Real Estate

Global commercial real-estate stock Life Science REIT could rise by 60%: Jefferies

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