Treasury Yields Fall Ahead of Consumer Sentiment Index — Market Talk

By Robb M. Stewart

OTTAWA--New-house prices in Canada fell in October by the most in 15 years, driven by declines in a pair of big cities amid a more mixed picture across the country.

Statistics Canada's new-house-price index dropped 0.4% from the month before, after remaining unchanged for a second month running in September.

From a year earlier, prices last month were 0.2% lower, the data agency said Friday.

After remaining relatively listless for most of the year, Canada's housing market has recently shown signs of responding to lowered borrowing costs and a fourth interest-rate cut from the Bank of Canada last month.

Sales of existing homes increased 7.7% from September, and on a non-seasonally adjusted basis were up 30% from a year earlier, recent data from the Canadian Real Estate Association showed. Still, benchmark prices for existing homes edged down 0.1% from the month prior in October, extending the run of little change since the beginning of the year after a jump in the number of properties listed for sale.

Statistics Canada said builders surveyed in the largest markets of Toronto and Vancouver--which recorded the sharpest monthly falls in prices for new homes--cited weak market conditions. Builders in these cities offered cash incentives and design credits to encourage new home sales, the agency notes.

Prices were down in nine of the 27 metropolitan areas surveyed by the agency, steady in 11 and up in the remaining seven.

The largest monthly price increase in October was reported in Winnipeg, Manitoba, which Statistics Canada said coincided with an active resale market where typical home prices are cheaper compared with the Canadian average.

The new-house-price data from Statistics Canada covers single-dwelling, semi-detached and row houses. It doesn't incorporate prices for newly built condominium units.

Write to Robb M. Stewart at robb.stewart@wsj.com

US equity futures were flat before Friday's opening bell ahead of business activity data.

Dow Jones Industrial Average futures were flat, S&P 500 futures declined 0.1%, and Nasdaq futures were down 0.2%.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.5% at $73.85 per barrel and US West Texas Intermediate crude 0.5% lower at $69.74 per barrel.

The Purchasing Managers' Index reports for November are scheduled for release at 9:45 am ET. The Services index is seen coming in at 55.2, while the Manufacturing index is expected to come in at 48.8, according to estimates compiled by Bloomberg.

US Consumer Sentiment index, due at 10 am, is seen coming in at 73 in the final reading for November compared with 70.5 previously.

In other world markets, Japan's Nikkei closed 0.7% higher, Hong Kong's Hang Seng ended 1.9% lower, and China's Shanghai Composite finished 3.1% lower. Meanwhile, UK's FTSE 100 rose 1.1%, and Germany's DAX index gained 0.6% in Europe's early afternoon session.

In equities, shares of Nike were 1.4% higher pre-bell after Needham initiated coverage on the stock with a buy rating and an $84 price target. EHang Holdings shares gained 2% after the company's board approved a $30 million share buyback program.

On the losing side, Knightscope K stock was 33% lower after the company priced late Thursday a $12.1 million public offering of common shares and pre-funded warrants.

The BSE Sensex climbed over 1900 points, or 2.5%, to close at 79,117 on Friday, enjoying its biggest daily gain since June and halting losses from the prior session.

A broad-based recovery in information technology (IT), financial, banking and energy stocks spearheaded the recovery.

A sharp rebound in Adani Group stocks also contributed significantly.

Optimism around Q3 GDP data, expected next week, lifted sentiment after the RBI’s monthly bulletin projected that Indian economic growth would accelerate to 7.6% in Q3 from 6.7% in Q2.

Meanwhile, a flash PMI survey showed India's private sector growth accelerated to a three-month high in November.

For the week, the Sensex added about 2%.

European bourses tracked moderately higher midday Friday as traders mulled war in Eastern Europe, but also prospects for easing from the European Central Bank after soft European business activity reports from S&P Global.

Retail and property stocks led gainers, while bank issues lagged.

Investors also eyed Wall Street futures signaling red and uneven closes overnight on Asian exchanges, where China-exposed exchanges lost ground.

The flash S&P Global Eurozone services purchasing managers index (PMI) logged at 49.2 in November, down 51.6 in October, and lagging below the 50-marker that separates growth from contraction.

The flash Eurozone manufacturing PMI declined to 45.2 in November from 46.0 in October.

The flash composite purchasing managers index (PMI), a combination of the manufacturing and services sectors, declined to 48.1 in November from 50.0 in October.

The pan-continental Stoxx Europe 600 Index was up 0.3% mid-session.

The Stoxx Europe 600 Technology Index was up 0.4%, and the Stoxx 600 Banks Index lost 1.9%.

The Stoxx Europe 600 Oil and Gas Index was up 0.1%, and the Stoxx 600 Europe Food and Beverage Index inclined 0.8%.

The REITE, a European REIT index, rose 1.7%, and the Stoxx Europe 600 Retail Index inclined 1.5%.

On the national market indexes, Germany's DAX was down 0.1%, but the FTSE 100 in London was up 0.%. The CAC 40 in Paris was off 0.3%, and Spain's IBEX 35 lost 0.4%.

Yields on benchmark 10-year German bonds were lower, near 2.58%.

Front-month North Sea Brent crude-oil futures were steady near $74.26 per barrel.

The Euro Stoxx 50 volatility index was up 1.6% to 19.25, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.