Yields Surge • Global Inflation • Prologis Earnings

October 19, 2022 | Hoya Capital

Yields Surge • Global Inflation • Prologis Earnings Real Estate Daily Recap Oct 19 Written By U.S. equity and bond markets snapped a two-day rally Wednesday as hotter-than-expected inflation data in the U.K. and Canada lifted domestic interest rates to the highest levels since 2007. Retreating after a two-day rebound but still hanging-onto weekly gains of 3%, the S&P 500 slipped 0.7% today but Mid-Caps and Small-Caps were under more pressure with declines of over 1.5%.

Real estate equities were hit particularly hard today amid the surge in longer-term interest rates with the Equity REIT Index declining 2.4% today with all 18 property sectors in negative territory. Inflation isn't just a U.S. problem: Global sovereign bond yields swelled higher today on data showing double-digit inflation rates in the U.K. and similarly-persistent price pressures in Canada. Industrial REIT Prologis (PLD) dipped about 4% today despite reporting strong results and raising its property-level growth outlook, but softness in its third-party asset management business along with commentary on the firm's "cautious" capital allocation strategy and its assumption of "further macro deterioration" weighed on the stock price.

Income Builder Daily Recap U.S. equity and bond markets snapped a two-day rally Wednesday as hotter-than-expected inflation data in the U.K. and Canada lifted domestic interest rates to the highest levels since 2007. Retreating after a two-day rebound but still hanging-onto weekly gains of 3%, the S&P 500 slipped 0.7% today but Mid-Caps and Small-Caps were under more pressure with declines of over 1.5%. Real estate equities were hit particularly hard today amid the surge in longer-term interest rates with the Equity REIT Index declining 2.4% today with all 18 property sectors in negative territory while the Mortgage REIT Index slipped 1.4%.

Homebuilders slid 5% following weaker-than-expected Housing Starts data as construction activity has cooled considerably amid the historic surge in mortgage rates this year. Global sovereign bond yields swelled higher today on data showing double-digit inflation ...