Outside Malaysia

US stocks regain momentum as housing, GDP data show strength

US stocks regained their momentum and hovered near all-time highs as traders digested encouraging data on gross domestic product (GDP) growth and real estate, looking for hints about the strength of the economy ahead of Friday’s payrolls report. The S&P 500 Index rose 0.13% to 2,204.66. The Dow added 23.7 points ( 0.12%) to 19,121.60.

US third-quarter GDP revised higher on consumer spending

The US economy expanded more than previously reported last quarter on a sunnier picture of household spending, the primary growth engine. GDP rose at a 3.2% annualized rate in 3Q16, the fastest in two years, compared with an initial estimate of 2.9%, Commerce Department figures showed. The median forecast in a Bloomberg survey called for a 3% gain.

Home prices in 20 US cities climbed 5.1% in September

Home prices in 20 US cities continued to climb in September, while a gauge of values nationwide exceeded the pre-recession peak, according to S&P CoreLogic Case-Shiller data. 20-city property values index rose 5.1% yoy after a similar gain in the year through August. The median forecast in a Bloomberg survey was 5.2%.

Consumer confidence in US increases to a nine-year high

Consumer confidence rose in November to the highest level since July 2007 on increased optimism about the US labor market and economy, according to a report from the Conference Board. Confidence index increased to 107.1 from a revised 100.8. The median forecast in a Bloomberg survey was 101.5.

Euro area confidence rises as ECB reviews asset-purchase program

Euro area economic confidence inched up ahead of a much-anticipated European Central Bank (ECB) decision that will take place amid signs of brightening prospects for the 19-country region. An index of executive and consumer sentiment increased to 106.5 in November from a revised 106.4 in October, the European Commission said. That compares with a forecast of 106.8 in a Bloomberg survey.

German inflation fails to pick up as ECB weighs adding stimulus

German inflation unexpectedly remained unchanged in November, suggesting the European Central Bank (ECB) may need to do more to meet its goal for price growth in the 19-nation euro area. Consumer prices rose 0.7% yoy, the Federal Statistics Office said. That’s below the 0.8% rate forecast in a Bloomberg survey. Prices were unchanged from October.

Japan’s household spending, retail sales decline in October

Japan’s household spending dropped for an eighth straight month and retail sales fell slightly in October, even as the unemployment rate remained at the lowest in two decades. Household spending fell 0.4% yoy, following a 2.1% decline in September. The median forecast in a Bloomberg survey was for a 1% decline. Retail sales fell 0.1% yoy, after dropping 1.7% in September.

Oil tumbles as Saudi-Iranian discord puts OPEC agreement at risk

Oil fell to a two-week low as an OPEC deal to curb output appeared in jeopardy after Iran and Saudi Arabia failed to bridge differences. Brent for January settlement fell US$1.86 (3.9%) to US$46.38 a barrel.

Source: Affin Hwang Research - 30 Nov 2016