Outside Malaysia

Dow, Russell extend rallies as economic data lifts industrials

The Dow added to its all-time high and the Russell 2000 Index extended a rally to 14 days as data fueled speculation that the world’s largest economy can withstand higher rates that the Federal Reserve (Fed) has signaled may be imminent. The S&P 500 Index rose 0.1% to a record 2,204.61. The Dow rose 59.31 points (0.3%) to 19,083.18.

Fed officials saw rate hike relatively soon, minutes show

Federal Reserve (Fed) officials saw a strengthening case to raise interest rates as the labor market tightened, with some saying a hike should happen in December, according to minutes of their November gathering. “Some participants noted that recent committee communications were consistent with an increase in the target range for the federal funds rate in the near term or argued that to preserve credibility, such an increase should occur at the next meeting,” the record of the Federal Open Market Committee meeting showed.

Sales of new US homes declined to four-month low in October

Purchases of new US homes declined in October to a four-month low, showing the residential real estate market began to soften a month prior to a jump in borrowing costs. Sales decreased 1.9% to a 563,000 annualized pace, Commerce Department data showed. The median forecast in a Bloomberg called for a 590,000 rate.

Consumer sentiment in US jumps after trump election victory

Consumer confidence rose more than previously reported to a six-month high in November, showing Americans became more optimistic about their finances and the economy after Donald Trump won the presidential election. The University of Michigan said that its final index of sentiment rose to 93.8 from 87.2 in October.

US jobless claims rebound after plunging to four-decade low

Filings for unemployment benefits in the US rebounded last week from a four-decade low while remaining consistent with a firm labor market. Jobless claims rose by 18,000 to 251,000 in the period ended Nov. 19, a Labor Department report showed. The median forecast in a Bloomberg survey called for 250,000 applications.

Euro area economic growth gathers pace as orders and prices rise

Euro area economic growth accelerated to its fastest pace this year as growing order books prompted companies to add more workers and raise prices. A Purchasing Managers’ Index for manufacturing and services rose to 54.1 in November from 53.3 a month earlier, IHS Markit said.

UK cuts 2017 growth forecast and plans to increase borrowing

UK Chancellor of the Exchequer Philip Hammond laid out a somber framework for post-Brexit Britain, slashing the forecast for economic growth in 2017 and saying the government will need to borrow more over the next five years partly as a result of the vote to leave the European Union. Hammond said the Office for Budget Responsibility now sees economic growth next year of 1.4% instead of the 2.2% forecast in March.

Oil closes near US$48 as Iraqi remark seen boosting OPEC deal odds

WTI closed near US$48 a barrel after Iraq’s prime minister said the country will participate in an OPEC production reduction. Brent for January settlement decreased US$0.17 to US$48.95 a barrel.

Source: Affin Hwang Research - 24 Nov 2016