Outside Malaysia

Another record for S&P 500 after ECB boosts stimulus

US equities advanced for the fifth straight session with the S&P 500 Index hitting a record for the second day in a row and Dow Jones Industrial Average for a third. The S&P 500 added 0.2% to 2,246.11. The Dow Average added 65 points (0.3%) to a record 19,614.81.

Applications for jobless benefits in US fell in latest week

Fewer Americans filed applications for unemployment benefits last week, reinforcing the picture of a healthy job market. Jobless claims declined by 10,000 to 258,000 in the week ended Dec. 3, a report from the Labor Department showed. The median forecast of economists surveyed by Bloomberg called for 255,000.

US household wealth rose US$1.59 trillion in third quarter

Household wealth in the US accelerated in 3Q16, driven by higher financial assets and real-estate values, figures from the Federal Reserve showed. Net worth for households and non-profit groups rose by US$1.59trn (1.8%) to a record US$90.2trn in 3Q16 from the previous quarter, according to Fed’s financial accounts report, previously known as flow of funds survey.

ECB expands stimulus to US$2.4 trillion as monthly purchases slow

The European Central Bank (ECB) expanded its quantitative-easing program to exceed €2.2trn (US$2.4trn) by the end of 2017, buying at a reduced monthly pace with the caveat that it can step up or prolong purchases if needed. The Governing Council will extend the program from April at a slower speed of €60bn (US$65bn) a month from €80bn currently, according to a statement.

Merkel’s deputy says Brexit taking far too long in nudge to May

German Vice Chancellor Sigmar Gabriel said Brexit is taking “far too long” and maintaining the UK’s ties to the European Union won’t be easy. Gabriel signaled concern that extended uncertainty implied by UK Prime Minister Theresa May’s timeline for starting Britain’s exit from the EU by the end of March might cause economic damage, though “we’re not experiencing a strong impact” for now.

Japan slashes 3Q16 growth estimate as business spending drops

Japan unexpectedly cut its reading of third-quarter economic growth to an annualized 1.3%, from a preliminary estimate of 2.2% expansion. The revision was driven by drops in business spending and in private inventories. The median estimate of economists in a Bloomberg survey was for an annualized 2.3% expansion.

China exports snap seven-month losing streak as imports surge

China’s exports gained, snapping a seven-month losing streak, as a cheaper yuan aided foreign purchasing. Imports jumped the most in more than two years. Overseas shipments rose 0.1% yoy in dollar terms in November. Imports climbed 6.7%, decreasing the trade surplus to US$44.6bn.

Oil climbs as scrutiny shifts to meeting on non-OPEC supply cuts

Crude climbed as investors shifted their focus to whether OPEC will be able to persuade other producers to commit to output cuts. Brent for February settlement climbed US$0.89 (1.7%) to US$53.89 a barrel.

Source: Affin Hwang Research - 9 Dec 2016