Housing starts in the US dropped by 12.4% from the previous month to a seasonally adjusted annualized rate of 1.239 units in July of 2026. The result was firmly below market expectations of a softer drop to 1.35 million units, not far from the six-year low of 1.182 million from two months prior. Starts sank by 15.6% in multi-unit houses, while they dropped by 9.9% in single-unit housing. Among different geographical locations, units sank in the Midwest, (27.6% to 173 thousand), South (-12.6% to 645 thousand), and West (-13.8% to 149 thousand). In turn, starts were higher in the Northeast (17.1% to 164 thousand).

Germany's ZEW Indicator of Economic Sentiment rose 7.9 points to 34.2 in August 2026, well above market expectations of 30 and reaching its highest level since February, suggesting that confidence in the German economy is strengthening despite ongoing geopolitical risks. Expectations for future activity became more optimistic, with 44% of analysts anticipating an economic improvement over the coming months, compared with just 9.8% expecting deterioration. Views of current conditions also improved, with the corresponding indicator rising 16.5 points to -61.1. Sentiment strengthened across all major sectors, particularly the automotive industry. Analysts cited strong corporate results, resilient exports and government infrastructure spending as key supports. Consumer expectations improved as well, although risks remain, including exceptionally low water levels on the Rhine, which could disrupt transportation and weigh on economic activity.

Crude oil traded around $85 a barrel on Tuesday as uncertainty over the Strait of Hormuz continued to support prices. Tensions remain elevated, with the US and Iran showing little sign of reaching an agreement over control of the key shipping route. President Donald Trump said Washington is not currently holding or planning talks with Tehran, while confirming that the US naval blockade remains in place. Despite his claim that Hormuz is open and mines have been cleared, shipping risks persist. A vessel was reportedly attacked while leaving the strait, suffering engine-room damage and a crew casualty, according to UK maritime authorities. Meanwhile, Gulf producers are finding alternative ways to maintain exports despite the disruption. Saudi Arabia has begun offering crude cargoes sourced from outside the chokepoint, suggesting it may be adopting measures similar to the United Arab Emirates to move oil through or around the affected area.

US pending home sales fell by 2.3% month-over-month in July 2026, following a downwardly revised 4.8% decline in June and against market forecasts of a 0.3% rise. This marked the second consecutive monthly decrease, with contract signings falling across all four major regions: the West (-4.7%), the South (-2.2%), the Northeast (-2%) and the Midwest (-0.7%). Compared with a year earlier, pending home sales dropped by 2.2%, as declines across the West (-7.1%), the South (-3%) and the Northeast (-0.2%) offset stronger activity in the Midwest (1.7%). NAR Chief Economist Lawrence Yun said elevated mortgage rates and record home prices continue to weigh on housing demand, reducing contract signings and keeping homes on the market longer. While stronger employment could help bring buyers back if mortgage rates ease, the adjustment is likely to be gradual. He noted that pending contracts remain 30% below pre-pandemic 2019 levels while payroll employment is 5% above.

US stocks were mostly lower on Tuesday, extending losses from the previous session as higher borrowing costs offset recent support from AI infrastructure companies. The S&P 500 fell 0.5%, the Nasdaq lost 1.6%, and the Dow eased 150 points. Long-term Treasury yields extended their surge to multi-year highs as inflation risks and surging bond issuance from AI companies raised different estimates on term premia. Inflationary concerns were magnified by more increases in energy prices as the US signaled a prolonged blockade on Iran tanker exports. AI companies were mostly lower, with Nvidia, Meta, Tesla, and Oracle dropping up to 3%. Credit-sensitive financial companies were also under pressure with Goldman Sachs and JPMorgan trading in the red. Meanwhile, Home Depot gained around 1% after beating earnings estimates despite high

Industrial production in the United States increased by 0.2% in July 2026, falling short of market expectations for a 0.3% rise, following an upwardly revised 0.3% increase in June. Manufacturing output, which accounts for about 78% of total industrial production, went up 0.2% in July after rising 0.3% in June, in line with forecasts. Manufacturing output excluding motor vehicles and parts increased 0.4%. Mining production increased by 1.3%. Meanwhile, mining output grew 0.2%, and utilities output rose 0.5%, with similarly sized increases in electric and natural gas utilities. Capacity utilization edged up to 76.3%, a rate that is 3.1 percentage points below its long-run (1972–2025) average.