t turns out China's demand for raw materials is more robust than the overall economy. In other words, there's some decoupling between China's housing activity and commodities.

US rates and crude oil remain the two most-important variables driving asset prices globally now. WTI crude rose to a one-year high near $94 a barrel. Ten-year yields jumped to 4.6%, pushing the dollar stronger along the way.

The strength in oil, and more broadly the resilience of raw materials, seems at odds with a sluggish Chinese economy, considering the commodity-heavy housing sector remains in trouble. The floor space of newly started housing averaged about 87 million square meters over the past 12 months, marking a 60% decline from a peak in 2021. That isn't far from the slump in the US housing market during the financial crisis.