Outside Malaysia

US stocks were little changed amid optimism over economy

US stocks were little changed as economic data improvedand the Federal Reserve said it will raise interest rates when growth is strong enough to withstand higher borrowing costs. The S&P 500 Index fell 0.96 point (0.05%) to 2,010.40. While, the Dow added 13.75 points (0.08%) to 17,279.74.

Leading economic indicators in US increased 0.2% in August

The Conference Board’s index of US leading economic indicators, a gauge of the outlook for the next three tosix months, climbed 0.2% in August after increasing 1.1% in July, the group said. The median forecast of economists surveyed by Bloomberg called for an advance of 0.4%.

US AAA credit rating affirmed by Fitch with stable outlook

The US’s AAA credit-ranking was affirmed by Fitch Ratings, which maintained its stable outlook, while citing nation’s unparalleled financing flexibility and economic recovery. Fitch had upgraded the outlook from negative in March, joining Moody’s Investors Service and Standard & Poor’s in assigning stable views on the world’s largest economy.

G-20 warns of potential market risks amid uneven growth

Group of 20 finance chiefs and central bankers said low interest rates could lead to a potential increase in financial-market risk, as major economies rely on monetary stimulusto bolster uneven growth. G-20 finance chiefs will monitor the potential increase in financial market risks, while strengthening policy frameworks, according to the communique. They also pledged to meet their exchange-rate commitments, and noted “downside risks” from geopolitical tensions.

Coeure says too early to judge if more ECB stimulus is needed

European Central Bank (ECB) Executive Board member Benoit Coeure said policy makers will take their time to assess the impact of stimulus measures announced in the past three months. Since June, the ECB has cut interest rates to record lows, unveiled a four-year lending program for banks to bolster credit and committed to purchasing assets. Weak demand in the ECB’s first loan offer has sparked speculation over whether more action is needed to reach President Mario Draghi’s goal of boosting the balance sheet toward €3trn (US$3.9trn).

Asia may need to sacrifice growth to cope with Fed, Basri says

Asia’s developing nations may have to sacrifice some growth next year and focus on keeping their economies stable amid a potential fallout from higher US interest rates, Indonesian Finance Minister Chatib Basri said. Capital outflows are a threat facing emerging markets as the prospect of the Federal Reserve lifting rates lures funds, Basri said. In Indonesia, where the benchmark rate is already at its highest since 2009, policy makers may have to tighten further to preserve the nation’s relative appeal to investors, he said.

South Korea’s Choi urges central bank to back growth efforts

South Korea Finance Minister Choi Kyung Hwan urged the central bank to support Asia’s fourth-biggest economy, saying it’s important for monetary policy to be in “harmony” with government efforts to boost growth. The pace of recovery in the economy has been “very slow” since a ferry disaster earlier this year, Choi said. The accident prompted consumers and businesses to cut spending in mourning. The trend in low inflation and growth can be seen across the world, Choi said. “To stem the cycle of low growth, what we need is to have some bold policies to boost demand. South Korea is similar,” he said.

WTI falls third day on dollar strength as supply rises

WTI crude fell for a third day on rising US inventories as a stronger dollar weighed on commodity prices. Brent for November settlement gained US$0.69 to US$98.39 a barrel on the ICE Futures Europe exchange.

Source: Bloomberg