US stocks rebound on corporate results, GDP report

US  stocks rebounded from the worst day since July, as corporate results topped  estimates  and  data  showed  the  fastest  economic  growth  since 2011.  The  S&P  500  rose  0.9%  to  1,982.85.  The  Dow  Jones  Industrial Average added 167.35 points (1%) to 17,113.15.

Economy in US grew 4.6% in 2Q14, most since 2011

The US economy expanded in the 2Q14  at the fastest rate since the 4Q11 as companies stepped up investment and households boosted spending. GDP  grew at a revised 4.6%  annualized rate  in 2Q14, up from a previous estimate  of  4.2%,  Commerce  Department  data  showed.  The  increase matched the median forecast of economists surveyed  by Bloomberg and followed a 2.1% decline in the 1Q14.

Fisher says Fed must weigh wage pressures in setting rate policy

The Federal Reserve mustn’t “fall behind the curve” as it weighs when to start raising interest rates, Dallas Fed President Richard Fisher said, citing strengthening US  growth and building wage-price pressures.  He called US 2Q14  growth  “uber  strong,”  referring  to  the  upward  revision  to  an annualized rate of 4.6%, and said history had shown that wage pressures could accelerate when unemployment got below current levels of 6.1%.

ECB willing to weigh more stimulus if needed, Coene says

The  European  Central  Bank  (ECB)  would  be  prepared  to  enact  more stimulus measures if necessary to increase liquidity in the euro-area, ECB Governing  Council  member  Luc  Coene  said.  Coene,  who  also  heads Belgium’s  central  bank,  held  out  the  possibility  that  the  targeted-loan program  (TLTRO)  that the ECB announced in June wouldn’t be adequate to spur lending and stimulate the economy of the 18-nation euro-area.

Spain raises GDP forecasts cutting taxes ahead of 2015 election

Spain’s Cabinet approved a 2015 budget based on higher growth forecasts as the government counts on an economic recovery to trim Spain’s  budget deficit even as it cuts taxes in the run-in to the general election.  The GDP will grow 1.3%  this year and 2%  in 2015, more than previous estimates of respectively 1.2% and 1.8%, Economy Minister Luis de Guindos said.

Inflation slowing more than forecast shows risk for BOJ

Japan’s  inflation  slowed  more  than  expected  in  August,  highlighting  the risks facing Bank of Japan  (BOJ)  Governor Haruhiko Kuroda in his push for prices to rise 2%.  Consumer prices excluding fresh food rose 3.1%  in August  from  3.3% in July, undershooting  the median projection for a 3.2% increase in a Bloomberg News survey of economists.

Vietnam 3Q14 GDP growth rises on foreign investment

Vietnam’s  economic  growth  accelerated  in  the  3Q14  as  rising  foreign investment  boosted  manufacturing  and  exports,  helping  counter  slower lending  by  banks.  GDP  rose  6.19%  in  the  3Q14  from  a  year  earlier, quickening from a  revised 5.42%  gain reported in the  2Q14, according to data released by the General Statistics Office.

Oil caps biggest weekly gain in a month

WTI  crude  capped  its  biggest  weekly  gain  in  a  month  on  speculation stronger  US  economic  growth  will  increase  demand.  However,  Brent  for November settlement ended unchanged at US$97 a barrel.

Source: Bloomberg