Outside Malaysia

US stocks slide after Fed rate hike as energy, utilities drop

US stocks slipped as all 11 groups in the S&P 500 Index turned negative after the Federal Reserve raised interest rates and forecast a steeper path for borrowing cost increases next year. The S&P 500 Index fell 0.8% to 2,253.28. The Dow dropped 118.68 points (0.6%) to 19,792.53.

Fed raises rates, boosts outlook for borrowing costs in 2017

Federal Reserve officials raised interest rates for the first time this year and forecast a steeper path for borrowing costs in 2017, saying inflation expectations have increased “considerably” and suggesting the labor market is tightening. The FOMC’s decision was unanimous for the first time since July. The 25bps increase brings the target for the federal funds rate to a range of 0.5% to 0.75%. New projections show central bankers expect three quarter-point rate increases in 2017, up from the two seen in the previous forecasts in September, based on median estimates.

Retail sales in US increased less than forecast in November

Sales at US retailers rose less than forecast in November, representing a pause in spending after robust gains in the previous two months. The 0.1% advance followed a revised 0.6 percent increase in the prior month that was smaller than initially reported, Commerce Department data showed. The median forecast in a Bloomberg survey called for a 0.3% gain.

US factory production drops for first time in three months

US factory output dropped in November for the first time in three months, showing an anemic recovery in manufacturing after an extended slowdown. Production at factories, which make up 75% of all output, fell 0.1%, a Federal Reserve report showed. The median forecast in a Bloomberg survey called for a 0.2% drop.

UK employment declines for first time in more than a year

UK employment fell for the first time in more than a year in the three months through October as the labor market showed some signs of weakness. The number of people in work fell by 6,000 to 31.76m people, the Office for National Statistics said. While the decline was small, and the jobless rate was unchanged at 4.8%, the statistics office said the labor market “appears to have flattened off in recent months.”

Japan corporate sentiment rises for 1st time in six quarters

Confidence among Japan’s large manufacturers improved for the first time since June last year as the fall in the yen improved prospects for company earnings. Sentiment among large manufacturers rose to 10 from 6 in 4Q16, according to the Tankan survey released by the Bank of Japan.

China credit expands most since March on robust mortgage lending

China’s broadest measure of new lending jumped the most since March, boosted by borrowing for home loans and a resurgence of shadow-banking activity. Aggregate financing rose to 1.74trn yuan (US$252bn) in November, compared with a median estimate of 1.1trn yuan in a Bloomberg survey and 896.3bn yuan the prior month.

Oil tumbles as Federal Reserve rate boost sends dollar higher

Oil tumbled as the dollar climbed against its peers after the Federal Reserve raised interest rates for the first time this year. Brent for February settlement fell US$1.82 (3.3%) to US$53.90 a barrel.

Source: Affin Hwang Research - 15 Dec 2016