Outside Malaysia

US equities dip as financial stocks decline, phone shares gain

US stocks fell as financial shares dropped and a rally in energy companies faded after crude oil pared some gains on expectations for a supply cut. The S&P 500 Index slipped 0.1% to 2,256.96. The Dow Jones Industrial Average added 39.58 points (0.2%) to 19,796.43.

US inflation expectations rose last month, New York Fed says

US household inflation expectations ticked up in November and the share of consumers expecting higher interest rates over the coming year surged, according to a monthly survey from the Federal Reserve Bank of New York. The expected inflation rate three years ahead edged up to 2.7% from 2.6% in October, according to the median survey response. Respondents on average reported a 35% chance of receiving a higher interest rate on their savings accounts a year from now, marking the highest level in the history of the survey.

EU calls for Brexit talks ‘swiftly’ after Article 50, draft says

The European Union (EU) will set out for the first time on Dec. 15 how it will conduct its Brexit negotiations with the UK as preparations intensify before Prime Minister Theresa May officially fires the starting gun. EU governments will be asked to “proceed swiftly” in authorizing the opening of the negotiations once May triggers Article 50 of the Lisbon Treaty to formally start the withdrawal, according to a draft of the EU statement.

Hammond sees growing consensus on transitional Brexit period

Chancellor of the Exchequer Philip Hammond suggested his push for a transitional period to cushion Britain’s exit from the EU is gaining support among ministers. Hammond told Parliament’s Treasury Committee it’s likely both Britain and the 27 remaining European Union members will conclude a longer transition period is needed to smooth the path of Brexit. Some officials in other countries already share that stance, he said.

May faces new legal case over post-Brexit single market plan

UK Prime Minister Theresa May, contesting a High Court judgment that she needs Parliament’s approval to begin Brexit talks, faces a fresh challenge of her strategy. Campaigners from both sides of the Brexit divide begin a quest seeking judicial review of the government’s position on the single market, they said in a statement. They want courts to rule whether the government needs a separate parliamentary mandate to withdraw from the European Economic Area, which grants single market access.

China warns Trump against using Taiwan for leverage on trade

China warned Donald Trump against using the One-China policy regarding Taiwan as a bargaining chip in trade talks. “Adherence to the One-China policy is the political bedrock for the development of the China-US relationship,” Foreign Ministry spokesman Geng Shuang said. “If it is compromised or disrupted, the sound and steady growth of the China-US relationship as well as bilateral cooperation in major fields would be out of the question.”

Oil climbs to 17-month high on Saudi pledge, non-OPEC output cut

Oil advanced to the highest since July 2015 after Saudi Arabia signaled it’s ready to cut output more than earlier agreed and non-OPEC countries including Russia pledged to pump less next year. Brent for February settlement climbed US$1.36 to US$55.69 a barrel.

Source: Affin Hwang Research - 13 Dec 2016