Market bounce back lacks conviction

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news there has been a financial market bounce-back today after yesterday's Omicron drop. But you have to say today's reaction isn't full of conviction. Meanwhile, the New Zealand dollar has fallen right out of favour</p><p>But first in the US <a href="https://www.nar.realtor/newsroom/pending-home-sales-jump-7-5-in-october" target="_blank"><strong>pending home sales rose</strong></a> in October from a disappointing September but still remain lower than a year ago. Still, this data means that total existing-home sales in 2021 will exceed 6 million, and the highest in 15 years.</p><p>The pace of the <a href="https://www.dallasfed.org/research/surveys/tmos/2021/2111.aspx#tab-results" target="_blank"><strong>Dallas Fed factory survey</strong></a> eased back a little with its expansion impulse slowing somewhat. There were good gains in new orders, but a fall in capital investment. Prices paid continue to rise, but prices received aren't, and that squeeze is starting to be noticed.</p><p>Also topping out are <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/211129/dq211129b-eng.htm?HPA=1" target="_blank"><strong>Canadian producer prices</strong></a>, high but not rising much in October from September.</p><p>In Canada, the Port of Vancouver has <a href="https://www.theglobeandmail.com/business/article-port-of-vancouver-descends-into-distress-as-bc-flooding-severs-rail/" target="_blank"><strong>descended into ‘distress’</strong></a> as British Columbia flooding severs rail lines and highways. There are now 54 ships waiting to unload but no way to move the goods. Meanwhile vast numbers of empty containers can't move either, breaking the supply-chain system there.</p><p>In China, new <strong>data</strong> shows that housing rents are falling. Average home rents in China’s major c