Policy Watch

• The landmark multilateral nuclear accord with Iran took effect on Sunday lifting expansive economic sanctions placed on the country over the past decade with its assured compliance to international regulations on its nuclear program. The resolution was passed 90 days ago by the five members of the U.N. Security Council—the U.S., Russia, Germany, the United Kingdom, and China—and guarantees that Iran will not engage in any uranium enrichment activities for the next 10 years. The U.S. estimates that it will take Iran about six months to decommission 15,000 of its centrifuges, convert its heavy-water reactor at Arak, and reduce its stockpile of enriched uranium by 98%. The country will then be held accountable to the U.N.’s International Atomic Energy Agency (IAEA). Meanwhile, the IAEA is currently conducting probe into whether the Tehran government has been secretly attempting to develop the technologies needed to build atomic weapons, which has no bearing on the implementation of the current sanctions relief agreement with the country. [WSJ]

Economic Indicators & News

• The National Association of Homebuilders Housing Market Index (HMI) demonstrated a stronger-than-expected October reading of 64, a 10-year high, as the future sales component for new homes surged to 75 from 68. The present sales component was also three points higher at 70, and traffic, which has been a weak point for the index, remained constant at 47. Regionally, the HMI was strongest in the West, where it jumped 11 points, followed by the South and Northeast. The HMI fell two points in the Midwest. Low supply of existing homes on the market and perpetually low interest rates have boosted homebuilder sentiment in recent months. [BLS]
• China’s economy grew at an officially-reported annualized pace of 6.9% in the third quarter, its slowest since the peak of the global recession in 2009, though still beating analysts’ expectations for 6.7% growth. The GDP growth is below the Beijing government’s target rate of 7.0%, and its better-than-anticipated reading calls into question the accuracy of the state’s statistical reporting, as fixed asset investment and industrial production data also released on Monday were below forecasts at 5.7% and 5.9% growth, each. The service sector component rose 8.6%, however, while real estate sales increased 7.5% continuing their recovery after contracting for 17 months. [FT]