The world's superpower housing sector remains corroded…

Since that the U.S government tax credit program expired, the world's leading economy saw its housing market recovery pace slowing down noticeably, not forgetting the ongoing elevated unemployment levels, tightened credit conditions and rising foreclosures, which have also weighed down profoundly as well on the housing sector's overall activities.

In fact, later on today the housing starts for the month of June will be released and are expected to have dropped by 2.7% to an annual rate of 577,000 from the prior reading of 593,000, which will actually be the lowest level of the year due to the plummeting in house sales following the actual termination of the U.S government tax incentive support program, which was the major factor behind prior enhancement signs witnessed within the sector this past period.

Plus the building permits of the month of June will be released as well later on today and are expected to have dropped by 0.7% to an annual rate of 570,000 from the prior estimate of 574,000, confirming once again that overall housing activities have eased knowing that this index is considered a leading indicator beside the housing starts of course.

If truth be told, a general weakness will continue on being witnessed throughout the current housing market activities within the fourth quarter of this year and this housing powerlessness is obviously a reason that the present economic revival is not gaining momentum along with overall downside pressures mainly caused by the never ending deterioration of the labor market.

Moreover, Lennar Corp for instance saw it home sales plummeted by almost 20 percent to 25 percent within last month compared to last year performance mainly since that the tax credit expiration shattered demand, still beside of the housing market data investors will focus also on today's earnings knowing that huge well-known corporations as Apple Inc, Yahoo Inc, Johnson & Johnson, Goldman Sachs Group Inc and others will be reported today but are forecasted to come out mixed as an overall.

Now, turning to the superpower's territorial neighbor and major trading partner; Canada, we could say that it's overall economical healing did not slow down but continues on undergoing at a gradual pace with strong challenges in the way as well, having in mind that overall Canadian sectors remain on struggling to pick up, still this overall recovery pace is taking place smoothly, which could actually push the Bank of Canada today to rise its interest rate to 0.75% from a prior rate of 0.50%, knowing that its jobless rate is gradually falling.