Outside Malaysia

Dow Average tops 19,000 for the first time

US stocks extended all-time highs, with the Dow Jones Industrial Average topping 19,000 for the first time and small caps clocking the longest rally in 20 years, as investors poured into riskier assets on speculation growth will accelerate. The S&P 500 Index climbed 0.2% to 2,202.94. The Dow Jones Industrial Average rose 0.4% to 19,023.87.

US existing home sales climb to highest since early 2007

Sales of previously owned US homes unexpectedly climbed in October to the highest level since February 2007, a sign of momentum in the housing market a month before a jump in borrowing costs, National Association of Realtors data showed. Contract closings rose 2% to a 5.60m annual rate.

UK borrows less than forecast in pre-budget boost for Hammond

Britain posted a smaller-than-forecast budget deficit in October as tax receipts jumped, handing a boost to Chancellor of the Exchequer Philip Hammond on the eve of his key fiscal statement. Net borrowing stood at £4.8bn (US$6bn), down from £6.4bn pounds a year earlier and below the £6bn pounds predicted by economists in a Bloomberg survey, Office for National Statistics figures showed.

Britons’ long-term economic outlook weakened since Brexit vote

UK consumers’ view of the economy’s long-term prospects have deteriorated since the country voted in June to leave the European Union. IHS Markit’s index of economic optimism over the next 10 years dropped to -18.4% in November from -11.1% in August and -3.5% in July, it said.

IMF’s Lipton says China should make exchange rate more flexible

International Monetary Fund Deputy Managing Director David Lipton said China should move toward a more flexible exchange rate policy and that its current account surplus still isn’t in line with fundamentals. Private sector debt is very high and there are questions about whether companies are able to repay their debt, and allowing unprofitable companies to continue producing and borrowing despite high debt could hurt the economy, Lipton said.

Duterte to ask Philippine central bank chief to stay in office

Philippine President Rodrigo Duterte will ask central bank Governor Amando Tetangco to stay in office for a third term and will seek to amend laws to allow that. Finance Secretary Carlos Dominguez confirmed that he had been authorized by Duterte to ask Tetangco to stay after his second term ends in July 2017.

Brazil central bank director: all tools on table for real

Brazil’s central bank would consider all tools if currency interventions were needed, one of the institution’s directors said days after the real posted its worst sell-off since the 2008 crisis. Policy makers can intervene in the market with any "normal" instruments to combat problems such as excess volatility and low liquidity, Brazil central bank foreign affairs director Tiago Berriel said. The monetary authority could also hold new foreign-exchange swap sales, he said.

Oil closes near US$48 as OPEC still negotiating Iran, Iraq cuts

WTI closed near US$48 a barrel after an OPEC committee failed to agree on Iranian and Iraqi production levels. Brent for January settlement rose US$0.22 to US$49.12 a barrel.

Source: Affin Hwang Research - 23 Nov 2016