US stock rebound fades as energy shares drop with oil

A rebound in US stocks faded late in the session as energy shares slid with the oil price. The S&P 500 Index ended the session up less than 0.2% at 1,877.70. The Dow lost 5.88 points (less than 0.1%) to 16,315.19.

UK inflation rate falls to five-year low of 1.2%

A surprise drop in UK inflation to the lowest level in five years may give Mark Carney scope to keep interest rates at a record low for longer. The rate of consumer-price growth declined in September to 1.2% from 1.5% in August as falling oil prices and a stronger pound lowered the cost of imports. The report from the ONS underscores the case for the BOE governor to maintain emergency policy settings as deterioration in the euro-area economy threatens the UK’s expansion.

Germany cuts growth outlook as recession peril mounts

Germany cut its growth outlook and investor confidence fell to the weakest level in two years as recession concerns mount in Europe’s biggest economy. The Economy Ministry reduced its 2014 economic-growth forecast to 1.2% from 1.8%, and its 2015 prediction to 1.3% from 2%. Economy Minister Sigmar Gabriel called for more investment that might aid the European Central Bank in its battle to revive the recovery in the 18-nation euro area.

Merkel vows austerity even as growth projection cut

Chancellor Angela Merkel said that Germany won’t raise public spending to stimulate the economy even after her government slashed growth forecasts for this year and next. Merkel vowed that her government will pursue its balanced budget goal regardless of the outlook. The IMF cut its euro-area growth forecasts to 0.8% for 2014 and 1.3% next year.

Schaeuble says Germany will stay the course in difficult times

Finance Minister Wolfgang Schaeuble said the German government will continue on its path of budget consolidation even as the economic environment for Germany and the euro region has worsened. Sanctions against Russia are contributing to a deteriorating growth outlook for Europe’s biggest economy, together with weaker growth in emerging economies, Schaeuble said. “We’re agreed in the German federal government that we must stay the course even in difficult times,” he said.

Singapore construction falls most since 2010

The high-rise buildings that make up Singapore’s skyline aren’t soaring as much these days. Construction, which made up 4.4% of the economy last year, fell 2.7% in the 3Q14 from the previous period. That extends a fall of 2.4% in the 2Q14. Prime Minister Lee Hsien Loong said in May the government will defer S$2bn (US$1.6bn) worth of building projects for one to two years to spread out the demand for construction workers. The move may save 20,000 to 30,000 foreign workers, he said.

Brent falls to lowest since 2010 after IEA cuts forecast

Brent oil tumbled to the lowest level in almost four years and WTI slipped the most since 2012 after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009. Brent for November settlement dropped 4.3% to US$85.04 a barrel.

Source: Bloomberg