Stocks rebound as S&P 500 climbs for 3rd day on earnings

US  stocks  rallied  for  a  third  day  as  optimism  over  corporate  earnings spurred a rebound from last week’s selloff.  The S&P 500 Index rose 0.9% to 1,904.02. The Dow added 19.26 points (0.1%) to 16,399.67.

Fed’s Rosengren sticks to 3% growth forecast, sees end for QE

Federal Reserve  Bank of Boston President Eric Rosengren said the Fed shouldn’t overreact to turmoil in financial markets as it approaches its next policy making meeting.  Rosengren said he believes the FOMC  should halt bond  purchases  as  planned  when  it  meets  Oct.  28-29.  He  added  the program could be extended if there is additional erosion in the outlook for economic growth.

ECB said to start purchase program with French, Spanish debt

The  ECB  bought  covered  bonds  for  the  first  time  since  President  Mario Draghi unveiled an asset purchase program last month. The ECB acquired short-dated French notes as well as Spanish securities  as  Draghi said he intends  to  expand  the  bank’s  balance  sheet  by  as  much  as  €1trn (US$1.3trn)  to  stave  off  deflation  in  the  euro  area.  Covered-bond purchases are the latest addition to the ECB’s medley  of unconventional tools that also includes targeted long-term loans to banks and a negative deposit rate. The central bank will also start buying asset-backed securities before the end of the year.

Germany, France vow investment, sidestep who will pay for it

German  and  French  cabinet  members  pledged  to  boost  investment  and speed  economic  reforms  as  the  euro  area  economy  sags,  while sidestepping  the  question  of  how  to  finance  the  drive.  French  Finance Minister Michel Sapin and Economy Minister Emmanuel Macron said that they agreed steps aimed at budget consolidation and investment. Macron and  Sapin  said  they  want  Germany  to  invest  an  extra  €50bn  (US$64bn) over three years to match €50bn in French spending cuts.

Philippines orders bank capital boost amid collateral curbs

The Philippines will order lenders to boost capital and cap the value of real estate that can be used as loan collateral to ensure banks gird themselves for increased risk taking. Bangko Sentral ng Pilipinas approved a minimum capital requirement for larger banks that’s as much as six times the current level,  the  central  bank  said.  Banks  must  also  limit  the  collateral  value  of real  estate  mortgages  at  60%  under  a  new  credit  standard  to  be implemented over two years, a separate statement showed.

Vietnam must boost investment for 2015 growth aim, Ngan says

Vietnam  can’t  meet  its  goal  for  economic  growth  next  year  unless  the government  boosts  domestic  investment  higher  than  its  proposed  target, legislator Tran Hoang Ngan said.  “The government’s target of 6.2%  GDP growth  for  2015  will  be  unrealistic  if  it  doesn’t  boost  investment  higher,” Ngan said. The government aims for domestic investment to reach  30%  of GDP  in  2015,  even  as  it  takes  steps  to  resolve  bad  debt  at  banks  and privatize state firms, Prime Minister Nguyen Tan Dung said.

Oil falls, OPEC seen waiting till meeting to curb output

Brent crude fell on speculation that OPEC won’t take any action to bolster prices  before  a  meeting  scheduled  for  Nov.  27  in  Vienna.  Brent  for December settlement declined US$0.76 to US$85.40 a barrel.

Source: Bloomberg