Outside Malaysia

US stocks slide as Dow hovers near 20,000, health shares drop

US stocks slid with the Dow Jones Industrial Average within 60 points of reaching 20,000, following a rally that has pushed the country’s equities into the top four best-performing developed markets this year. The S&P 500 Index fell 0.3% to 2,265.18. The Dow Jones Industrial Average lost 32.66 points (-0.2%) to 19,941.96.

US existing-home sales climb to highest since early 2007

Sales of previously owned US homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed. Contract closings rose 0.7% to a 5.61m annual rate, that fastest pace since February 2007. The median forecast in a Bloomberg survey was 5.5m.

Spain probably expanded 0.7% this quarter, central bank says

Spain’s economy probably maintained its pace this quarter, supported by resilient internal demand and “intense” job creation, the country’s central bank said. The Bank of Spain estimates that GDP will show an increase in output of 0.7% in 4Q16, unchanged from 3Q16. The central bank noted the recovery continues to be bolstered by the strength of the nation’s internal spending push, pegged to more employment and favorable financing conditions for households.

UK November borrowing leaves Hammond on track to meet forecast

UK’s budget deficit narrowed marginally in November, leaving Chancellor of the Exchequer Philip Hammond on course to meet his new full-year borrowing target. Net borrowing was £12.6bn (US$15.5bn) compared with £13.2bn a year earlier, the Office for National Statistics said. It left the shortfall in the first eight months of the fiscal year down 11.5% at £59.5bn.

New Zealand economy grows faster than expected on building boom

New Zealand’s economy grew more than economists forecast last quarter as construction boomed and consumer spending increased. Gross domestic product gained 1.1% from the previous quarter, when it rose a revised 0.7% that was lower than first reported. The median forecast in a Bloomberg survey was 0.8% gain.

Indonesia’s outlook changed to positive from stable at Fitch

Indonesia’s credit rating outlook was changed to positive from stable by Fitch Ratings, citing the potential of reforms in the past year supporting growth in Indonesia’s economy. The country’s BBB- rating was affirmed, Fitch said in a statement. “A strong structural reform drive since September 2015 is gradually improving the difficult business environment, and is likely to support the growth outlook in the medium term,” Fitch said.

Thailand holds rate as fed hike pressures Asian currencies

Thailand held its key interest rate near a record low for a 13th straight meeting, opting for stability as the prospect of higher US borrowing costs weighs on Asian currencies and clouds the outlook for growth. The Bank of Thailand kept its one-day bond repurchase rate at 1.5%, the central bank said. All but one surveyed by Bloomberg predicted the decision.

Oil declines as US crude inventories unexpectedly increase

Oil declined after a government report showed US crude stockpiles increased for the first time in five weeks. Brent for February settlement slipped US$0.89 to US$54.46.

Source: Affin Hwang Research - 22 Dec 2016