Outside Malaysia

US equities resume advance as financial, phone stocks rally

Banks and phone companies pushed US stocks higher for the eighth time in 10 days as investors weighed a rising dollar and prospects of a steeper path for higher borrowing costs next year. The S&P 500 Index rose 0.4% to 2,262.03. The Dow added about 60 points (0.3%) to 19,852.

Consumer prices in US increase for fourth consecutive month

The cost of living in the US rose for a fourth straight month, adding to signs that inflation is approaching the Federal Reserve’s goal. The consumerprice index climbed 0.2% mom in November (0.4% in October), matching the median estimate of economists, Labor Department figures showed.

Jobless claims in US decrease to lowest level in three weeks

Fewer Americans filed applications for unemployment benefits last week, validating the Federal Reserve’s view of a vigorous labor market. Jobless claims fell by 4,000 to a three-week low of 254,000 in the period ended Dec. 10, a report from the Labor Department showed. The median estimate in a Bloomberg survey called for 255,000.

Euro-area maintains momentum as weaker currency helps factories

The euro-area economy maintained its growth momentum in December and there were signs of a pickup in inflationary pressures. A composite Purchasing Managers’ Index held at 53.9 in December, the highest this year and above the 50 mark that divides expansion from contraction. A measure of input prices rose to the highest in 5 1/2 years, which Markit blamed on the euro’s depreciation and rising global commodity prices.

Bank of England holds rate and says inflation rise may slow in 2017

The Bank of England kept its key interest rate at a record low and noted that the pound’s recent appreciation may mean a slower pickup in inflation next year. The Monetary Policy Committee said sterling’s advance could mean “less of an overshoot” above its 2% goal than previously predicted. It still sees a pickup in price growth and repeated its line that it has limited tolerance for exceeding its target. The MPC, led by Governor Mark Carney, voted to hold the benchmark rate at 0.25% and also unanimously voted to keep its two asset-purchase programs running as planned.

Bank of Korea holds key rate to weigh Fed, domestic politics

South Korea’s central bank held the nation’s benchmark interest rate unchanged as it monitors risks from parliament’s vote to impeach President Park Geun-hye and the impact of the rate hike by the US Federal Reserve. The Bank of Korea kept the seven-day repurchase rate at a record low 1.25% for a sixth month, in line with forecast by Bloomberg.

Indonesia keeps key rate unchanged as rupiah slumps on Fed

Indonesia’s central bank kept its benchmark interest rate unchanged for a second month as more policy tightening in the US added to the risk of capital outflows from emerging markets. Governor Agus Martowardojo and his board held the seven-day reverse repurchase rate at 4.75%, in line with the forecasts of all but one of 21 economists surveyed by Bloomberg.

Oil closes near US$51 as Kuwait said to cut sales to US, Europe

WTI settled near US$51 a barrel as Kuwait was said to make bigger supply cuts to US and European customers. Brent for February settlement climbed US$0.12 to US$54.02 a barrel.

Source: Affin Hwang Research - 16 Dec 2016