Outside Malaysia

S&P 500 nears record as ECB meeting looms

US stocks advanced, rising with emerging-market assets as investors speculated the European Central Bank (ECB) will extend its monthly bond purchases to stoke growth in the region. The S&P 500 rose 0.3% to 2,212.23. The Dow gained 35.54 points (0.2%) to 19,251.78.

Trade gap in US widened to a four-month high in October

The US trade deficit widened to a four-month high in October as overseas sales weakened and American companies imported more equipment and consumer goods. The gap grew to US$42.6bn from the prior month’s revised US$36.2bn, Commerce Department figures showed. The Bloomberg survey median called for a US$42bn shortfall.

Euro area growth boosted by consumption as trade damps output

Private and government consumption drove euro-area growth in 3Q16, with trade damping economic output. Gross domestic product rose 0.3% qoq in 3Q16, the European Union’s statistics office said. That matches earlier estimates and the rate of expansion in the previous quarter.

German factory orders surge on demand for investment goods

German factory orders surged in October, suggesting growth in Europe’s largest economy will accelerate at the end of the year. Orders, adjusted for seasonal swings and inflation, jumped 4.9% from September, when they fell a revised 0.3%, data from the Economy Ministry showed. The median estimate in a Bloomberg survey called for a 0.6% increase.

EU Brexit negotiator: UK has less than two years to negotiate deal

The European Union signaled Prime Minister Theresa May must first strike a deal for the UK’s post-Brexit trade ties with the bloc or lose out on a transitional phase that banks and businesses want. Michel Barnier, the EU’s chief negotiator, said that there might be “some point” to granting British industries a period to adjust to the new arrangements after Brexit, but that would depend on a permanent trade plan being agreed.

RBA holds key rate as commodity upswing outweighs slowdown

Australia’s central bank kept interest rates unchanged as a global commodity upswing eases the impact of a weaker economy at home. Governor Philip Lowe left the cash rate at 1.5%, saying “some slowing in the year-ended growth rate is likely” while noting that higher resource export prices “are providing a boost to national income.”

Thailand Governor stores firepower as Trump-led trade fears loom

Thailand’s central bank is making sure it keeps enough ammunition in store to respond to a downturn in world trade amid a wave of antiglobalization sentiment that’s swept from the UK to the US. “The current policy stance is accommodative in the current situation,” Bank of Thailand Governor Veerathai Santiprabhob said. “The MPC has said publicly all along that we are ready to take additional easing if and when we see that there is a major risk to the Thai economy” and policy makers “stand ready to deploy more monetary policy easing in that scenario.”

Oil falls from 16-month high as OPEC production keeps on rising

Oil retreated from a 16-month high after OPEC pumped a record amount of crude in November. Brent for February settlement fell US$1.01 (1.8%) to US$53.93 a barrel.

Source: Affin Hwang Research - 7 Dec 2016