Outside Malaysia

US equities dip as consumer stocks slip and dollar strengthens

US stocks slid as the dollar pushed higher and Treasuries extended declines following the release of economic data that met or exceeded expectations. The S&P 500 Index slipped 0.2% to 2,260.96. The Dow Jones Industrial Average slid 23.08 points (-0.1%) to 19,918.88.

US economic growth revised up to 3.5% pace in third quarter

The US economy expanded more than previously reported last quarter on bigger contributions from a range of factors including services spending, intellectual property and construction by state and local governments. Gross domestic product rose at a 3.5% annualized rate in 3Q16, compared with a prior estimate of 3.2%, Commerce Department figures showed. The median forecast in a Bloomberg survey called for a 3.3% gain.

Orders for US business equipment increase more than forecast

Orders for US business equipment climbed more than forecast in November, a sign corporate investment is starting to firm up. Bookings for non-defense capital goods excluding aircraft rose 0.9% (0.2% in October), the most since August, Commerce Department data showed. The median forecast in a Bloomberg survey called for a 0.4% increase.

Jobless claims in US increased to six-month high last week

The number of Americans filing applications for unemployment benefits rose more than expected to a six-month high last week, potentially reflecting seasonal swings in a still-healthy labor market. Jobless claims increased by 21,000 to 275,000 in the week ended Dec. 17, a report from the Labor Department showed. The median forecast in a Bloomberg survey called for 257,000.

UK consumers are feeling gloomy about the economic outlook

Accelerating UK inflation and looming Brexit talks are taking their toll on consumers, who have lowered their expectations for the economy in 2017. GfK’s consumer confidence index was little changed this month, while its measure of household’s outlook for the economy slipped to minus 23 from minus 22. Excluding the sharp drop in July after the European Union referendum, that’s the lowest reading in almost four years.

Taiwan holds rate as new iPhone, rising oil boost outlook

Taiwan held its benchmark interest rate for a second straight quarter as economic indicators show fourth-quarter strength and improving growth prospects for 2017. Policy makers held the discount rate to banks at a sixyear low of 1.375%, the central bank said in a statement. All 28 economists in a Bloomberg survey predicted the decision.

Philippines holds key rate as emerging nations brace for Fed

The Philippines left its benchmark interest rate at a record low as emerging nations brace for a steeper tightening path in the US. Bangko Sentral ng Pilipinas kept the overnight reverse repurchase rate at 3%, it said, as predicted by all 18 economists surveyed by Bloomberg. The central bank sees inflation averaging 3.3% next year compared with a November estimate of 3%. The 2018 inflation forecast was raised to 3% from 2.9%.

Oil advances as Iraq signals compliance with OPEC output accord

Oil rose to the highest close in more than a week as Iraq signaled that it would adhere to the OPEC production targets. Brent for February settlement rose US$0.59 (1.1%) to US$55.05 a barrel.

Source: Affin Hwang Research - 23 Dec 2016