Game of thrones: The death of King Abdullah of Saudi Arabia early this morning is unlikely to deter the desert kingdom from maintaining a high level of oil production despite the recent sharp drop in prices, analysts tell The New York Times. Saudi Arabia’s policy results from a consensus of the kingdom’s leadership and energy experts, and it will not be easy to abandon, longtime observers of Saudi Arabia say. Read the full story.
By the numbers: Mortgage rates are continuing their new year swoon, according to the latest data released Thursday by Freddie Mac. The Washington Post reports that with financial markets uneasy about the global economy, investors are putting their money in bonds, which is driving yields down to very low levels. Because mortgage rates are closely tied to yields on long-term government bonds, those are down as well. The 30-year fixed-rate average sank to 3.63%. It has now fallen three weeks in a row and is at its lowest level since May 2013. The 15-year fixed-rate average dropped to 2.93%, marking the second week in a row it has stayed below 3%. Read the full story.
Finishing strong: An index designed to predict the future health of the U.S. economy posted a fourth straight solid gain in December. The Conference Board announced this morning that its index of leading indicators increased 0.5% in December after a revised gain of 0.4% in November. The index also posted solid gains in September and October after a flat reading in August. The December increase reflected widespread strength with eight of the 10 forward-pointing indicators that make up the index showing strength. The Associated Press has the full story.
