Outside Malaysia

US stocks drop despite energy rally on OPEC production pact

US stocks were mostly lower despite a strong performance by energy shares after OPEC members reached an agreement to cut petroleum production. The S&P 500 Index fell 0.27% to 2,198.81. The Dow added 1.98 points (0.01%) to 19,123.58.

OPEC agrees to cut production in drive to end record glut

OPEC confounded its doubters and sent crude oil prices soaring by agreeing to its first production cuts in eight years. OPEC will reduce output by about 1.2mbpd by January, the group said, fulfilling a plan sketched out in Algiers in September to cut its production to 32.5mbpd. Saudi Arabia will reduce output by about 0.5mbpd to 10.058mbpd, an OPEC document shows. Iraq, OPEC’s second-largest producer, agreed to cut by around 0.2mbpd from October levels.

ADP says companies in US added 216,000 employees in November

Companies in November added the most workers to US payrolls since June, data from the ADP Research Institute showed. Private payrolls climbed by 216,000 after a 119,000 gain in October that was revised down from 147,000. The median forecast in a Bloomberg survey was 170,000.

US consumer spending gain moderates as incomes increase

Personal spending increased at a more moderate pace in October after the biggest gain in five months, while faster income growth signaled demand will be sustained. Purchases rose 0.3% after a 0.7% September advance that was stronger than first estimated, Commerce Department figures showed. The median forecast in a Bloomberg survey called for a 0.5% advance in October.

Euro area inflation accelerates before key ECB decision on QE

Euro area inflation accelerated in November, continuing its slow improvement before a crucial European Central Bank meeting next week. Consumer prices rose 0.6% yoy, following a 0.5% increase in October, the European Union’s statistics office said. Core inflation was unchanged at 0.8% in November. Both readings match the median estimate on Bloomberg surveys of economists.

German joblessness extends decline as growth seen picking up

German unemployment continued to decline in November as Europe’s largest economy is poised to accelerate toward the end of the year. The number of people out of work fell by a seasonally adjusted 5,000 to 2.658m, data from the Federal Labor Agency showed, in line with a forecast in a Bloomberg survey. The jobless rate remained unchanged at 6%, matching the lowest level since reunification.

India’s economy grows less than estimated before RBI rate review

India’s economy grew less than estimated, adding pressure on central bank Governor Urjit Patel to lower interest rates at next week’s review. Gross domestic product rose 7.3% yoy in 3Q16, the Statistics Ministry said in a statement. This is slower than the 7.5% median estimate in a Bloomberg survey, though faster than the previous quarter’s 7.1% pace.

Oil jumps most in nine months after OPEC agrees to output cuts

Oil surged after OPEC approved the first supply cuts in eight years in an effort to ease a record glut and stabilize global markets. Brent for January settlement rose US$4.09 (8.8%) to US$50.47 a barrel.

Source: Affin Hwang Research - 1 Dec 2016