Outside Malaysia

US stocks rise in week despite need for earnings growth

US stocks rose on light post-Thanksgiving trading as the four major equity indexes reached all-time highs. The S&P 500 Index added 0.39% to 2,213.35. The Dow Jones Industrial Average rose 0.36% to 19,152.14.

US trade gap in goods widened, inventories fell at start of 4Q16

America’s merchandise trade gap unexpectedly widened and inventories declined at the start of 4Q16, advance data issued by the Commerce Department showed. The deficit expanded 9.6% in October, the most since March 2015, to US$62bn. The shortfall exceeded the US$59bn estimate in a Bloomberg survey. Inventories at the nation’s wholesalers decreased 0.4%, the most since February.

ECB’s Stournaras says ‘far too early’ to discuss QE tapering

The European Central Bank (ECB) has a long way to go to meet its inflation target so it’s “far too early” to discuss the gradual removal of monetary stimulus, Governing Council member Yannis Stournaras said. “Of course monetary policy will continue to be accommodating until inflation is at a desirable level, which is 2% or slightly lower,” Stournaras said. “There is still long distance from this target.”

UK economy shows no sign of brexit effect as spending rises

Consumers and businesses increased their spending in the third quarter as the UK economy registered a resilient performance following the Brexit vote. Household spending rose 0.7% qoq and business investment increased 0.9%, the Office for National Statistics said. Growth overall was unrevised at 0.5%, with trade providing the strongest contribution.

Japan’s CPI falls again, extending longest streak since 2011

Japan’s consumer prices fell for an eighth straight month, the longest streak of declines since 2009-2011, underlining how distant the nation is from achieving its 2% inflation target. Consumer prices excluding fresh food, the Bank of Japan’s primary gauge of inflation, dropped 0.4% yoy in October. The median forecast in a Bloomberg survey was -0.4%. Overall consumer prices rose 0.1%, with a spike in fresh food prices compensating for continued falls in energy costs.

China industrial profits accelerate as factory prices increase

Profit at industrial companies in China accelerated last month as prices recovered. Industrial profits rose 9.8% yoy in October to 616.1bn yuan (US$89bn), the National Bureau of Statistics said. That was faster than the 7.7% increase in September. Earnings in the first 10 months climbed 8.6% to 5.26trn yuan.

Taiwan posts second-straight expansion on electronics demand

Taiwan’s economy picked up in 3Q16 as domestic consumption firmed and global demand for its electronics and machinery exports rebounded. Gross domestic product rose 2.06% yoy in 3Q16, preliminary data released by the statistics bureau showed. That compares with a median estimate of 1.8% growth in a Bloomberg survey, and follows a 0.7% gain in 2Q16.

Oil tumbles most in two months amid OPEC accord skepticism

Oil dropped the most in more than two months on doubts OPEC will come to an accord to cut output as planned talks between producers inside and outside the group was canceled. Brent for January settlement decreased US$1.76 (3.6%) to US$47.24 a barrel.

Source: Bloomberg

Source: Affin Hwang Research - 28 Nov 2016