Outside Malaysia

US stocks slip most in four weeks as Trump-fueled rally fades

US stocks fell the most in four weeks as investors speculated that gains sparked by expectations for brisker economic growth under a new administration went too far too quickly. The S&P 500 Index lost 0.5% to 2,201.82. The Dow slipped 52.80 points to 19,099.34.

OECD lifts global growth forecasts on expected Trump stimulus

The OECD lifted its global growth forecasts for 2017 and predicted expansion in 2018 will reach its fastest pace in half a decade as Donald Trump’s planned fiscal stimulus provides a boost to major economies. World GDP will now expand 3.3% next year, up by 0.1ppt from September’s forecast, the Organization for Economic Cooperation and Development (OECD) said in a semi-annual report. The organization sees the global economy expanding 3.6% in 2018, the fastest pace since 2011.

Draghi warns UK likely to suffer most if hard Brexit hits

European Central Bank (ECB) President Mario Draghi warned that Britain’s economy would be the first to suffer if its decision to leave the European Union leads to protectionist measures. “If, in the long run, the risk of a lessopen UK economy in terms of trade, migration and foreign direct investment were to materialize, there would be a negative impact on innovation and competition and, thus, productivity and potential output,” Draghi said. “Such developments would first and foremost weigh on the UK economy.”

Italian consumer morale at 16-month low before key referendum

Italian consumer confidence fell to the lowest since July 2015 while Prime Minister Matteo Renzi faces a key vote that may see voters reject his constitutional reform and prompt his resignation. The household gauge measured 107.9 in November down from 108.0 the month before. The median estimate in a Bloomberg survey called for a reading of 107.6. Manufacturing confidence dropped to 102.0 from a revised 102.9 in October, statistics agency Istat said.

Vlieghe says BOE to tolerate inflation in stimulus defense

Bank of England (BOE) policy makers will look through most of the impact on inflation from the Brexit-induced fall in the pound and will tolerate fasterthan-targeted price increases to protect jobs and growth, Monetary Policy Committee member Gertjan Vlieghe said. Vlieghe said the best contribution that monetary policy can currently make is to keep interest rates where they are currently, in order to return inflation to target while avoiding volatility in output growth.

PBOC’s Yi says China reserves ‘very adequate,’ yuan stable

People’s Bank of China (PBOC) Deputy Governor Yi Gang said the country has "very adequate" foreign reserves and the yuan remains strong compared with the currencies the central bank uses to set the exchange rate. Capital will flow back to the country as the economy recovers and the business environment improves, Yi said. There’s no universal standard on the appropriate level of foreign reserves, and China still has the world’s biggest stockpile, Yi said.

Oil climbs as Iraq pledges to cooperate with OPEC on output deal

Oil rose as Iraq’s oil minister said it pledged to cooperate with OPEC to reach an agreement this week that’s acceptable to all members. Brent for January settlement advanced US$1 to US$48.24 a barrel.

Source: Affin Hwang Research - 29 Nov 2016