Outside Malaysia

**US stock market closed due to Christmas’ Day** Sales of new US homes rise to second-fastest pace since 2008

Purchases of new US homes increased in November to the second-fastest pace in almost nine years as the beginning of a spike in mortgage rates persuaded buyers to quickly sign contracts. Sales rose 5.2% to a fourmonth high of a 592,000 annualized pace, Commerce Department data showed. The median forecast in a Bloomberg survey was for a 2.1% gain to 575,000.

Consumer sentiment in US at 12-year high after Trump win

Consumer confidence jumped to the highest level since 2004, extending a surge in Americans’ optimism for their finances and the US economy following Donald Trump’s election victory. The University of Michigan said that its final index of sentiment rose to 98.2 from 93.8 in November. The median projection in a Bloomberg survey called for 98, equal to the preliminary reading released earlier this month.

French jobless claims decline for third month in November

France’s jobless claims declined for the third month in November, the longest streak since early 2008, in a recovery that comes too late to rescue the presidency of Francois Hollande. The number of people actively looking for work fell 0.9%, or 31,800, last month to 3.45m, the Labor Ministry said. That compared with an estimate of 3.48m, according to a Bloomberg survey of economists.

UK current-account deficit widens; GDP growth revised up

The UK current-account deficit widened in 3Q16 as Britain posted its worst trade performance in almost three years. The difference between money coming into the UK and money sent out was £25.5bn (US$31.3bn), the Office for National Statistics said. That’s equal to 5.2% of gross domestic product. The trade deficit widened to 2.8%, the most since 4Q13.

President Xi open to growth in China falling below 6.5%

President Xi Jinping isn’t wedded to China’s 6.5% economic growth objective due to concerns about rising debt and an uncertain global environment after Donald Trump’s election win in the US, according to a person familiar with the situation. Xi told a meeting of the Communist Party’s financial and economic leading group this week that China doesn’t need to meet the objective if doing so creates too much risk, said the person, who asked not to be named because the discussions were private. Leaders at the gathering agreed that the US$11tron economy would remain stable with slower growth as long as employment stays firm, the person said.

Brazil’s public accounts worsen in November as slump drags on

Brazil’s public accounts deteriorated in November as the country’s worst recession in a century drags on, according to a partial snapshot of government finances published by the national treasury. The central government’s primary budget deficit, which excludes interest payments and the finances of states and municipalities, hit 38.4bn reais in November, its worst-ever result for the month. That compares with a oneoff surplus of 40.8bn reais in October and a median forecast of a 41bn reais deficit from analysts surveyed by Bloomberg.

**Oil market closed due to Christmas’ Day

Source: Affin Hwang Research - 27 Dec 2016