Most US stocks rise amid small-cap rally

Most  US  stocks  rose,  as  small  cap  shares  rebounded  on  speculation selling was overdone and as concern over Europe’s stimulus plan faded. The  S&P  500  Index  was  little  changed  to  1,946.17.  The  Dow  Jones Industrial Average fell 3.66 points (0.02%) to 16,801.05.

Lagarde calls for bold global action to avoid ‘new mediocre’

The global economy needs bold policies to avoid a “new mediocre” period of sluggish growth as the world struggles with a disappointing recovery six years after the financial crisis, the head of the International Monetary Fund (IMF), Christine Lagarde said. She indicated that an acceleration next year will be less than previously forecast. She cited “some serious clouds on the horizon,” including elevated joblessness and low inflation in the euro-area.

Jobless claims in US unexpectedly decreased last week

The  number  of  Americans  who  filed  applications  for  unemployment benefits last week unexpectedly fell, a sign the job market is making more headway.  Jobless claims dropped by  8,000 to 287,000 in the week ended Sept.  27,  a  Labor  Department  report  showed.  The  median  forecast  of economists surveyed by Bloomberg called for 297,000.

ECB keeps rates on hold as focus shifts to asset buying

The European Central Bank (ECB) kept interest rates unchanged at record lows as investors wait for President Mario Draghi to reveal details of a plan to buy assets. The 24-member Governing Council left the main refinancing rate at 0.05% as predicted by all economists in a Bloomberg News survey. The  deposit  rate  and  the  marginal  lending  rate  remained  at  -0.2%  and 0.3%, respectively.

Draghi’s lack of stimulus target disappoints investors

Mario Draghi disappointed investors seeking a firm target for how far he’s willing  to  go  to  revive  the  euro-area’s  faltering  economy.  The  ECB president said officials will start sucking up covered bonds this month and asset-based securities this quarter and continue for at least two years. He shied away from a definitive goal for how much the ECB might buy, saying total stimulus may fall short of the €1trn (US$1.3trn) he’d earlier signaled.

China to impose quota on local government debt amid risks

China announced plans to cap the amount of debt local governments can take on and ban them from additional borrowing through financing vehicles as  authorities  step  up  efforts  to  control  risks  to  the  financial  system.  All borrowing by provinces and cities will need to be within a quota set by the State  Council,  China’s  cabinet,  and  approved  by  the  National  People’s Congress,  according  to  the  central  government.  Local-government  debt swelled 67% from the end of 2010 to 17.9trn yuan (US$2.9trn) as of June 2013,  according  to  the  National  Audit  Office.  Almost  40  percent  of  local governments’  liabilities  came  from  off-budget  funding  through  their  more than 7,000 financing vehicles.

Brent oil falls to lowest since June 2012 on ample supply

Brent crude dropped to the lowest level in more than two years amid signs that  global  supplies  are  outstripping  demand.  Brent  for  November settlement  slipped  US$0.74  (0.8%)  to  end  the  session  at  US$93.42  a barrel on the ICE Futures Europe exchange.

Source: Bloomberg