S&P 500 rallies to record after Japan boosts economic stimulus

US  stocks  jumped  as  an  unexpected  boost  in  stimulus  from  the  BOJ spurred  optimism  in  the  global  economy.  The  S&P  500  Index  advanced 1.2% to 2,018.05. The Dow rallied 195.1 points (1.1%) to 17,390.52.

Fed’s Lacker says inflation is low and ‘not a problem’

Federal Reserve Bank of Richmond President Jeffrey Lacker said he’s not worried  now  about  prices  rising  too  fast.  “Next  year,  some  time,  it  looks plausible that we’ll start needing to increase interest rates and we’ll try and time that carefully, given what the economy needs,” he said.

Consumer sentiment in US rises to highest since July 2007

Consumer  confidence  rose  in  October  to  a  seven-year  high  as employment  opportunities  and  declining  gasoline  prices  boosted Americans’ spirits. The Thomson Reuters/University of Michigan final index of sentiment increased to 86.9 (84.6 in September), the highest since July 2007. The median projection in a Bloomberg survey called for the measure to hold at its preliminary October reading of 86.4.

Kuroda’s stimulus turns focus back to Abe’s third arrow

The Bank of Japan’s unexpected expansion of stimulus puts the spotlight back on Prime Minister Shinzo Abe’s economic policies and the decision he faces on raising the sales tax.  The BOJ  said it  would raise the annual target  for  expanding  the  monetary  base  to  ¥80trn  (US$712bn),  up  from ¥60-70trn yen.

Russia’s surprise rate increase fails to stem ruble drop

The  ruble  tumbled  the  most  since  2011  after  a  larger-than-forecast increase  of  Russia’s  key  interest  rate  failed  to  ease  concern  that  the economy will remain hobbled by sanctions and capital flight.  The Bank of Russia raised its key rate to 9.5%  from 8%. Governor Elvira Nabiullina is resorting to higher borrowing costs to halt a currency run even after three earlier  increases  failed  to  assuage  investors  concerned  about  President Vladimir Putin’s stance on Ukraine.

China manufacturing slows as growth pressures deepen

China’s manufacturing slowed further in October, as a property slump and slowdown in investment growth put the economy on course for the slowest full-year growth since 1990. The government’s PMI  was at 50.8 in October (51.1  in  September),  trailing  the  51.2  median  estimate  of  analysts  in  a Bloomberg News survey.

South Korea trade surplus hits unexpected record as exports jump

South Korea posted a record trade surplus in October as demand from the US  boosted exports of products such as steel pipes and computers.  The US$7.5bn surplus was the highest for any month, the trade ministry said, and  was  US$2.5bn  more  than  the  median  estimate  in  a  survey  of economists  by  Bloomberg  News.  Exports  rose  2.5%  from  a  year  earlier, while imports dropped 3%.

Brent caps longest run of weekly losses since ’02 on glut

Brent crude capped a sixth weekly loss  as OPEC boosted production to a 14-month high amid a global surplus. Brent for December settlement slid US$0.38 (0.4%) to US$85.86 a barrel.

Source: Bloomberg