Outside Malaysia

US stocks climb with small caps after Europe shares end flat

US stocks inched higher as investors assessed a rally that has lifted equities to record levels in the past month. The S&P 500 Index added 0.2% to 2,262.53. The Dow added 39.65 points (0.2%) to 19,883.06.

Yellen sees economic gains boosting workers in strong job market

Federal Reserve Chair Janet Yellen said economic gains are finally raising living standards for most Americans as a healthy labor market contributes to higher wages. “After years of a slow economic recovery, you are entering the strongest job market in nearly a decade,” she said. “There are also indications that wage growth is picking up, and weekly earnings for younger workers have made strong gains over the past couple of years.”

German business confidence improves on signs of stronger growth

German business sentiment rose to the highest level in almost three years in December, signaling growth in Europe’s largest economy picked up speed toward the end of the year. The Ifo institute’s business climate index rose to 111 from 110.4 in November, the strongest since February 2014. The median estimate in a Bloomberg survey called for 110.6.

Japan has trade surplus for 3rd month as imports fall

Japan posted a trade surplus for a third straight month in November as imports continued to fall faster than exports. Exports fell 0.4% yoy in November after declining 10% in October. The median forecast in a Bloomberg survey was for a 2.3% drop. Imports declined 8.8%, leading to a trade surplus of ¥152.5bn (US$1.3bn) in November.

China home-price growth slows as property curbs dent demand

China’s overheated property market continued to cool in November as authorities rolled out renewed home-buying curbs to deflate a housing bubble. New-home prices, excluding government-subsidized housing, gained from the previous month in 55 of the 70 cities tracked by the government, compared with 62 in October, the National Bureau of Statistics said.

Indonesia’s central bank revives plan to cut three zeroes from rupiah

Indonesia’s central bank is reviving a plan to redenominate the currency of Southeast Asia’s biggest economy despite the threat of market turmoil as the US steps up the pace of interest-rate increases. “Re-denomination must be done while the economy is stable,” Bank Indonesia Senior Deputy Governor Mirza Adityaswara said. The rupiah is one of the highest denominated notes in Asia, and Bank Indonesia has proposed cutting three zeroes from the currency to simplify payments.

Russian consumer demand stagnates as retail sales miss forecasts

Russian consumer spending failed to pick up in November even as the ruble rallied and inflation continued to decelerate, showing that domestic demand will remain a drag on the economy as it emerges from its longest recession this century. Retail sales fell 4.1% yoy after an upwardly revised 4.2% drop in October, the Federal Statistics Service said.

Oil settles near US$52 as investors eye Libyan crude output return

WTI settled near US$52 a barrel as investors eyed the potential return of crude supply from Libya and awaited signs of output cuts in January after the deal among OPEC and non-OPEC nations to reduce a global glut. Brent for February settlement fell US$0.29 (0.5%) to US$54.92 a barrel.

Source: Affin Hwang Research - 20 Dec 2016