Markets struggle with negative economic anecdotes

<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 markets are struggling to make sense of a global economy buffeted by many unusual forces.</p><p>First, Russia has formalised its shutdown of oil and gas supplies to Europe and that is diving a scramble to activate other sources.</p><p>Then in the US, <a href="https://www.bloomberg.com/news/articles/2022-07-18/apple-to-slow-hiring-and-spending-for-some-teams-next-year?srnd=premium" target="_blank"><strong>Apple</strong></a> and <a href="https://www.bloomberg.com/news/articles/2022-07-12/google-ceo-says-company-plans-to-slow-hiring-for-rest-of-year?srnd=premium" target="_blank"><strong>Google</strong></a> say that they will slow their hiring intentions, signals that are more 'news' than 'substance', but ones that are reverberating in markets. <a href="https://www.bloomberg.com/news/articles/2022-07-12/microsoft-cuts-jobs-but-plans-increased-headcount-this-year?srnd=premium" target="_blank"><strong>Microsoft</strong></a> is making job adjustments too, but plans a new hiring increase.</p><p>And US <a href="https://www.nahb.org/news-and-economics/press-releases/2022/07/builder-confidence-plunges-as-affordability-woes-mount" target="_blank"><strong>home builders are glum</strong></a>, seeing demand leak away as house prices have to rise on rising costs, and buyers afraid of higher mortgage interest rates. This is despite <a href="https://www.census.gov/construction/nrs/pdf/newressales.pdf" target="_blank"><strong>new home sales running ahead of pre-pandemic levels</strong></a> - just not at the unusual level they enjoyed during the pandemic.</p><p>Canada's <a href="https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-data/data-tables/housing-market-data/monthly-housing-starts-construction-data-tables" target="_blank"><strong>June housing start